Karachi: Secure Logistics Group Limited (SLGL) has announced a strategic acquisition of Trax Online (Private) Limited, transforming Trax into a wholly owned subsidiary of SLGL, as confirmed in a corporate announcement on February 6, 2025. This development follows a previous announcement made on October 10, 2024, about the potential merger between the two companies. The decision was finalized during SLGL's Board of Directors meeting on February 4, 2025.
According to the proposed arrangement, Trax's entire issued and paid-up share capital will be vested into SLGL, with the issuance of shares from SLGL to Trax's shareholders. This move is subject to obtaining necessary approvals from shareholders, creditors, regulators, and the Islamabad High Court, as well as fulfilling other legal requirements. The parties involved have engaged in extensive discussions to address the commercial, legal, and operational aspects of the merger, including transaction structure, valuation, swap ratio, and integration plans.
The Scheme of Arrangement, which outlines the merger details, aims to create a leading 4 PL player in the logistics industry, covering long-haul and medium-haul transportation, e-commerce, and warehousing. SLGL, along with Trax, is expected to have a fleet of over 300 commercial vehicles, a network of 89 offices, four warehouses, and a workforce of approximately 3,000 employees. The merger will also enhance SLGL's capabilities in IoT business and security services.
The merger presents a unique opportunity to maximize shareholder value for both companies. SLGL's diversified offerings, including logistics, asset tracking, and security services, combined with Trax's expertise in last-mile delivery and warehousing, position the group as a potential market leader domestically and regionally. The strategic synergies are expected to double the bottom-line growth for the fiscal year 2025, with an anticipated 20-30% increase in EPS adjusted for new shares.
According to information available from the Pakistan Stock Exchange (PSX), SLGL will host an Analyst Presentation at the PSX premises in Karachi following the merger's completion. This presentation will provide critical insights, including a five-year financial forecast. The Scheme of Arrangement will be shared with the PSX and shareholders following directions from the Islamabad High Court and in accordance with applicable laws.