Karachi: In a significant corporate maneuver, Reliance Cotton Spinning Mills Limited has approved a Scheme of Arrangement for the amalgamation of Amer Cotton Mills (Pvt) Limited into its operations. The resolution passed during the shareholder meeting held on September 26, 2024, at the Cotton Exchange Building, Karachi, will see Amer Cotton Mills integrated into Reliance Cotton Spinning Mills without winding up the former.

According to information available from the Pakistan Stock Exchange (PSX), this strategic consolidation involves the transfer of all assets and liabilities from Amer Cotton Mills to Reliance Cotton Spinning Mills. The arrangement stipulates that shareholders of Amer Cotton Mills will receive ordinary shares of Reliance Cotton Spinning Mills in a specified proportion.

The merger is contingent upon approval from the High Court under Sections 279-283 of the Companies Act, 2017. This move is poised to streamline operations and strengthen the market position of Reliance Cotton Spinning Mills by consolidating resources and reducing operational redundancies.

The resolution has been attached as Schedule 'A' and initialed by the chairman of the meeting, indicating formal recognition and readiness to proceed with the legal formalities required to finalize the amalgamation.