Karachi: In a significant development in Pakistan's logistics and technology sector, Secure Logistics Group Ltd (SLGL) and Trax Online Pvt. Ltd. (TRAX) have announced their decision to merge, a move aimed at creating a leading logistics service provider with enhanced technology capabilities.
On October 10, 2024, the Boards of Directors of both companies approved a Scheme of Arrangement, which is now pending sanction from the High Court, as per the details outlined in their latest corporate announcement. This merger aims to harness synergies across their extensive operational networks and consolidate their strengths in asset tracking, logistics, and tech-driven supply chain solutions.
According to information available from the Pakistan Stock Exchange (PSX), the merger is expected to complete by December 31, 2024, subject to regulatory approvals and the final agreement between SLGL and TRAX. The consolidated entity will operate under the Secure Logistics Group banner but will encompass the technological and service strengths of both companies.
The merger is anticipated to streamline operations by reducing overlapping assets and focusing on technology-driven logistics solutions, which are expected to lead to significant cost savings and operational efficiencies. The combined entity will leverage SLGL's robust infrastructure and TRAX's advanced technology platforms to enhance service delivery across more than 650 cities and towns in Pakistan.
SLGL, known for its long-standing market presence and listed on the Pakistan Stock Exchange under the symbol of SLGL, brings a strong financial foundation and a comprehensive commercial fleet to the merger. TRAX, recognized as a tech-enabled supply chain leader, has facilitated logistic solutions for B2B merchants and managed over 32 million package deliveries, reinforcing its role as a critical player in technological logistics.
The merger is set to serve an extensive network of small and medium enterprises, potentially increasing the new entity's customer base to over 12,000 active clients, with expectations to maximize both top and bottom line growth for the stakeholders involved.