Lahore: In a pivotal corporate development on September 30, 2024, Saritow Spinning Mills Limited (SSML) and Kohinoor Power Company Limited (KPCL) announced the termination of their planned merger, a decision driven by an in-depth review of economic factors and SSML’s financial health.

The boards of directors of both SSML and KPCL, during their meetings, decided against the previously approved plan to amalgamate SSML into KPCL. According to information available from the Pakistan Stock Exchange (PSX), this retraction was based on the financial downturn experienced by SSML, which halted production back in February 2024. The anticipated benefits of the merger, once seen as a strategic enhancement, are now deemed unachievable due to the current economic climate.

This announcement, adhering to the requirements of Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of the PSX Rule Regulations, underscores a significant shift in the companies’ strategic directions. Both entities expressed gratitude towards their shareholders for their continued support and emphasized their commitment to exploring other strategic options moving forward.

Members of the Pakistan Stock Exchange have been notified as per regulatory requirements to ensure that all stakeholders are informed of these changes and their implications on the market.