Lahore: The Board of Directors of Ghani Chemical Industries Limited (GCIL) has approved a comprehensive Demerger/Merger Scheme during a meeting held today. The scheme, which involves a compromise, arrangement, and reconstruction of company assets, will require approval from the Lahore High Court and other regulatory bodies.

According to information available from the Pakistan Stock Exchange (PSX), the scheme includes the separation of the Calcium Carbide Project, currently being established by the company at the Hattar Special Economic Zone, from GCIL into a new entity, Ghani ChemWorld Limited (GCWL), which is presently a wholly-owned subsidiary of GCIL. Additionally, the merger will integrate the remaining assets of Ghani Products (Private) Limited (GPL), an associated company, into GCIL on a one-to-one share swap basis.

As part of the restructuring, GCIL will issue and allot partially redeemable shares of GCWL to its shareholders at a ratio of 50 partially redeemable shares of Rs. 100 each for every 1,000 ordinary shares of GCIL, representing Rs. 5,000 worth of redeemable shares against Rs. 10,000 worth of ordinary shares.

The board also approved the issuance of 70.00 million additional ordinary shares of GCIL to GCWL. Moreover, plans to list GCWL on the Pakistan Stock Exchange are underway, pending the submission of required documentation.

The scheme and all its details will be shared with PSX and the shareholders as per the directives of the Lahore High Court and applicable laws.