Zahur Cotton Mills receives court sanction for ITANZ acquisition

April 04, 2025 (MLN): Zahur Cotton Mills Limited (PSX: ZHCM) has successfully received the sanction of the Lahore High Court for its Scheme of Arrangement with ITANZ Technology Pvt Limited (ITANZ) under sections 279 to 283 and 285 of the Companies Act, 2017.

As per the Scheme, ZHCM’s name will be changed to “Itanz Technologies Limited” to better reflect its new business focus post-merger.

Additionally, the company’s principal line of business will be altered to include consultancy services in information technology and information technology-enabled services, such as software development, installation, implementation, and other related services.

The merger will involve the acquisition and amalgamation of ITANZ’s entire undertaking into ZHCM, effective from 30th September 2023, the company's filing on PSX revealed today. 

In consideration for the merger, 97.9 million ordinary shares of ZHCM, valued at Rs10 each, will be allotted to ITANZ shareholders at a share ratio of 1,959.23 shares of ZHCM for every 1 share of ITANZ.

As part of this process, ZHCM’s authorized share capital will increase by 100m shares, bringing the total authorized share capital to 120m shares.

The paid-up capital of ZHCM will also rise to 107.8m shares.

A separate notice of book closure will be issued to fulfill the necessary corporate formalities.

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