Lahore: In a significant move aimed at consolidating operations, Mitat Tractors Limited (MTL) has announced the approval of a merger scheme with Millat Equipment Limited (MEL). The decision was reached during the company's 202nd board meeting held on February 11, 2025, following the Lahore High Court's endorsement of the merger through Civil Original No.30220/24.

The merger, executed via amalgamation, will see Mitat Tractors Limited issuing and allotting a total of 7.72 million ordinary shares to the shareholders of Millat Equipment Limited. These shares will be fully paid up and distributed at par, adhering to the approved swap ratio of one MTL ordinary share for every 2.13 ordinary shares of MEL. The record date for determining shareholder eligibility was also confirmed during the meeting.

A notable aspect of the merger is the handling of fractional shares. According to the approved scheme, no fractional shares will be allotted to individual shareholders. Instead, fractional entitlements will be consolidated and issued in the name of an authorized person. This person will be tasked with selling the shares through the Pakistan Stock Exchange Limited. All proceeds from these sales will be donated to a charitable institution, reflecting the company's commitment to social responsibility.

According to information available from the Pakistan Stock Exchange (PSX), the merger is expected to create a more streamlined and efficient entity, enhancing MTL's market position within the automotive sector. The move is anticipated to foster growth and innovation, providing greater value to shareholders and stakeholders alike.

The board of directors also instructed the dissemination of this information to the TRE Certificate Holders of the Exchange, ensuring transparency and compliance with regulatory requirements. The merger marks a significant milestone in Mitat Tractors Limited's strategic vision for expansion and operational excellence.