Lahore: In a significant corporate development, the Board of Directors of First Treet Manufacturing Modaraba (FTMM) has approved a strategic restructuring move to merge FTMM into a newly incorporated public limited company. The decision, formalized through a circular resolution passed on October 15, 2025, marks a pivotal step in the company's evolution.

The merger is set to proceed under the legal frameworks of Section 96 and Section 131 of the Securities Act, 2015, along with Clause 5.6.1(a) of the Pakistan Stock Exchange (PSX) Rule Book. This restructuring initiative, aimed at converting FTMM into a public limited entity, is contingent upon securing a series of corporate and regulatory approvals. These approvals will involve coordination with entities such as the Securities and Exchange Commission of Pakistan (SECP), the Registrar Modaraba Companies, Pakistan Stock Exchange (PSX), the Competition Commission of Pakistan (CCP) for pre-merger clearance, if applicable, and the Honourable Lahore High Court. Additionally, the consent of certificate holders and creditors will be sought where legally necessary.

According to information available from the Pakistan Stock Exchange (PSX), the rights and interests of the certificate holders are to remain intact throughout the restructuring process. The Scheme of Arrangement will require finalization and subsequent approval from the board, followed by the necessary consent of certificate holders and shareholders, potentially through court-directed meetings. Importantly, this corporate restructuring is designed to have no immediate effects on the financial position or operational functions of FTMM, ensuring continuity in its obligations toward lenders, creditors, employees, and commercial partners.

Further developments regarding this merger will be communicated to the Exchange as they arise, in compliance with the relevant regulatory standards. Stakeholders, including TREC Holders, are to be duly informed of these proceedings.