Karachi: In a significant move within the textile sector, Reliance Cotton Spinning Mills Limited has announced the approval of a Scheme of Arrangement for its amalgamation with Sapphire Fibres Limited. The resolution was passed by the shareholders during an Extra Ordinary General Meeting held on December 8, 2025, at the Cotton Exchange Building in Karachi.

The amalgamation involves the merging of Reliance Cotton Spinning Mills Limited, along with all its assets and liabilities, into Sapphire Fibres Limited. This will result in the dissolution of Reliance Cotton Spinning Mills Limited without the need for winding up. Shareholders of Reliance Cotton Spinning Mills Limited will receive ordinary shares of Sapphire Fibres Limited in exchange, as outlined in the Scheme of Arrangement.

According to information available from the Pakistan Stock Exchange (PSX), the process also includes the cancellation of shares held by Sapphire Fibres Limited in Reliance Cotton Spinning Mills Limited. This step aims to eliminate the cross-holding between the two companies. Additionally, shares of Sapphire Fibres Limited held by Reliance Cotton Spinning Mills Limited will be distributed to its shareholders, excluding Sapphire Fibres Limited, to further reduce cross-holdings.

The Scheme of Arrangement also envisages a reduction in the issued and paid-up share capital of Reliance Cotton Spinning Mills Limited. This aspect of the arrangement is subject to approval by the High Court, in accordance with Sections 279-283 of the Companies Act, 2017.

The approval and adoption of the Scheme of Arrangement, along with all related matters, reaffirm the shareholders' support for the merger. The resolution underscores the commitment to comply with all applicable laws and regulations to facilitate the amalgamation process.

The development marks a notable consolidation within the designated market category of the textile industry, aiming to streamline operations and enhance synergies between the two entities.