Karachi: The High Court of Sindh at Karachi has sanctioned the Scheme of Arrangement for the merger of Archroma Chemicals Pakistan (Private) Limited (formerly Huntsman Textile Effects Pakistan (Private) Limited) with and into Archroma Pakistan Limited. This decision, as per the order passed on October 31, 2023, culminates the process that began with a petition for the approval of a merger scheme dated April 27, 2023.

The approved arrangement dictates that all assets, liabilities, and obligations of Huntsman will be transferred to and vested in Archroma Pakistan Limited against the allotment and issue of shares to Huntsman shareholders. The merger will result in Huntsman being dissolved without winding up as part of the restructure. All legal formalities, including separate shareholder meetings and creditor notifications, were completed, with no objections raised to the scheme.

The merger's financial considerations were determined based on evaluations by EY Ford Rhodes, which accounted for the audited financial statements of both companies for the period ended December 31, 2022. With all objections raised by the Securities and Exchange Commission of Pakistan (SECP) met and conceded to, the court found no impediment to granting the petition, thus allowing the merger as requested.