Lahore: In a significant judicial development, the Lahore High Court has sanctioned the merger of LSE SPAC-I Limited with Ningbo Green Light Energy Ltd., enabling the latter to continue as the surviving entity while the former will be dissolved without winding up. This decision was announced following a hearing on September 30, 2026, with the judgment being issued on October 13, 2026.
The merger, sanctioned under sections 279 to 283 in conjunction with section 285(8) of the Companies Act, 2017, was petitioned by Ningbo Green Light Energy Ltd. and LSE SPAC-I Limited, both of which maintain their registered offices in Lahore. Ningbo Green Light Energy Ltd., a key player in the energy sector, will absorb LSE SPAC-I Limited, initially formed as a Special Purpose Acquisition Company to raise funds and facilitate business combinations.
The court's order, dated June 18, 2026, called for Extraordinary General Meetings of both companies’ shareholders to deliberate on the proposed Scheme of Compromise, Arrangement, and Reconstruction. This scheme outlines the merger's mechanics, including the transfer of assets, liabilities, and restructuring of share capital. The shareholders of LSE SPAC-I Limited will receive allotted shares in Ningbo Green Light Energy Ltd., following an established entitlement ratio.
The Extraordinary General Meetings, supervised by Barrister Hamza Shehram Sarwar and Ameer Umar Farooq Nathoka, saw unanimous approval from shareholders. Notably, LSE SPAC-I Limited recorded 18,148,954 shares voting in favor, representing approximately 69.80% of its issued share capital, thereby meeting the statutory requirement of three-fourths approval in value of members present and voting.
According to information available from the Pakistan Stock Exchange (PSX), the merger aligns with corporate strategies to enhance market competitiveness and operational efficiency in the energy sector.
The Securities and Exchange Commission of Pakistan (SECP) and the Competition Commission of Pakistan (CCP) have also reviewed the merger proposal. The SECP emphasized revised share entitlements and regulatory compliance, while the CCP confirmed that the merger would not create a dominant market position or hinder competition, as per its first-phase order dated August 28, 2026.
Additionally, secured creditors, including Bank AL Habib Limited and Dubai Islamic Bank Pakistan Limited, provided their no-objection certificates, subject to conditions ensuring the preservation of existing financial agreements.
The court's approval underscores the adherence to statutory procedures, fair representation of stakeholders, and the disclosure of pertinent information. The merger is anticipated to fortify Ningbo Green Light Energy Ltd.'s market position, enhancing its operational footprint in Pakistan's energy sector.