Karachi: Supernet Technologies Limited has announced the approval of a significant corporate restructuring involving a merger with Supernet Limited (SNL). The decision, endorsed by the Board of Directors on May 27, 2025, will see SNL merge with and into Supernet Technologies, consolidating resources under a unified framework.

The merger, described in a draft Scheme of Arrangement under Sections 279 to 283 and 285(8) of the Companies Act, 2017, is set to proceed contingent on regulatory approvals, shareholder and creditor agreements, and the sanction of the High Court of Sindh at Karachi. This initiative follows the in-principle authorization issued earlier on January 29, 2025.

The transaction outlines the transfer of all SNL's assets, liabilities, and business operations to Supernet Technologies. As part of this capital re-organization, Supernet Technologies will issue 5.50 million ordinary shares valued at PKR 10 each, by capitalizing PKR 55.00 million from its accumulated profits. This shall be distributed at a ratio of 11 shares for every existing share held.

In exchange for the merger, Supernet Technologies will allot 101.62 million ordinary shares to SNL shareholders, excluding Supernet Technologies itself, at a swap ratio of 1.68 shares for each SNL share. Following the merger, SNL will dissolve without winding up, and all its shares, including those owned by Supernet Technologies, will be canceled.

According to information available from the Pakistan Stock Exchange (PSX), the proposed Scheme will be disseminated to relevant stakeholders, subject to the court's directives and applicable regulations.

The merger is expected to streamline operations and enhance value for both companies' shareholders. The market awaits further details as outlined by the designated market category and the procedural steps to follow.