Karachi: The Board of Directors of Zahur Cotton Mills Limited announced a transformative shift for the company during an emergent board meeting held today. This decision follows the Lahore High Court's approval of a Scheme of Arrangement between Zahur Cotton Mills Limited and Itanz Technology (Private) Limited.

On October 16, 2023, the board resolved to change the company's name to Itanz Technologies Limited, reflecting its new direction in the field of information technology. As part of this strategic realignment, the company will expand its principal business activities to include consultancy services in IT and IT-enabled services. This includes software development, installation, implementation, and other related IT supplies and services, aligning with the objectives of the merger.

The board sanctioned the acquisition and amalgamation of Itanz Technology's entire undertaking into Zahur Cotton Mills, with retrospective effect from September 30, 2023. This move aims to consolidate the companies' resources and streamline operations under the newly structured entity.

Additionally, the company's authorized share capital will see a substantial increase from PKR 200.00 million to PKR 1.20 billion. The paid-up capital is set to rise from PKR 98.60 million to PKR 1.08 billion through the issuance of 97,961,500 new ordinary shares. These shares, valued at PKR 10 each, will be distributed to the shareholders of Itanz Technology at a ratio of 1,959.23 shares of Zahur Cotton Mills for every share held by Itanz Technology.

Fractional shares resulting from this issuance will not be distributed. Instead, these fractional entitlements will be consolidated into whole shares and disposed of as deemed appropriate by the board.

According to information available from the Pakistan Stock Exchange (PSX), the company will undergo a change in its stock symbols. Zahur Cotton Mills Limited will use the symbol "ZHCM," while Itanz Technologies Limited will be identified by the symbol "Itanz."

The board has empowered the Chief Executive Officer to execute all necessary formalities related to the Scheme and the High Court's order. The CEO is also authorized to delegate these responsibilities as necessary to ensure a smooth transition.

The market category for this development falls under the designated market for the Pakistan Stock Exchange, where stakeholders are advised to inform the TRE Certificate Holders accordingly.