Karachi: In a significant corporate development on September 30, 2024, Kohinoor Power Company Limited (KPCL) and Saritow Spinning Mills Limited (SSML) announced the cancellation of their previously approved merger plan. This strategic retraction was driven by a comprehensive review of the prevailing economic conditions and SSML's operational challenges, including its cessation of production since February 2024.

According to information available from the Pakistan Stock Exchange (PSX), the decision to call off the merger comes after careful consideration of SSML's financial health, which has deteriorated significantly since the halt of its production operations earlier in the year. The boards of both companies concluded that the anticipated synergies and financial benefits of the amalgamation could no longer be realized under the current circumstances.

KPCL and SSML had initially received approval for their merger with the expectation of leveraging combined capacities and achieving greater operational efficiencies. However, the unfolding economic scenario and SSML’s financial instability necessitated a reassessment of their strategic direction.

The companies have expressed their gratitude towards their shareholders for their continued support and patience during this period. They are committed to exploring other strategic options to enhance shareholder value and adapt to the market dynamics.

KPCL and SSML have urged all members of the Pakistan Stock Exchange to update their records and inform relevant stakeholders of this change in the merger plans.