Lahore: The Honorable Lahore High Court has officially sanctioned the merger between MetaTech Trading Limited and Big Bird Foods Limited, as per the order dated June 26, 2024, facilitating a comprehensive transfer of business and assets.

The court-approved Scheme of Arrangement and Reconstruction, filed under case C.0 43907/2023, has effectively merged the complete business and undertakings of MetaTech into Big Bird Foods. The scheme, which took legal effect as of March 31, 2023, includes a SWAP ratio of 0.24 shares of Big Bird Foods for every share of MetaTech, leading to the issuance of 1,812,786 new shares of Big Bird Foods to MetaTech's shareholders. According to information available from the Pakistan Stock Exchange (PSX), this strategic consolidation aims to enhance operational synergies and market presence.

In the detailed financial preparations for this merger, auditors have confirmed the asset and liability values as recorded up until the sanction date of June 26, 2024. This verification was in line with the "Guidelines for Issue of Certificates for Special Purposes by Practicing Chartered Accountant Firms," issued by the Institute of Chartered Accountants of Pakistan (ICAP).

Furthermore, the authorized capital of Big Bird Foods has been increased from Rs. 3 billion, comprising 300 million shares, to Rs. 3.6 billion, or 360 million shares, to accommodate the merger. MetaTech Trading Limited will be dissolved following the court's order without undergoing winding up.

This merger not only reflects a significant restructuring within the Pakistani corporate landscape but also underscores the legal and financial frameworks that guide such transformations in the country’s business environment.