LAHORE: Zahur Cotton Mills Limited (ZHCM) has submitted its quarterly progress report to the Pakistan Stock Exchange (PSX) on 30 September 2024, outlining significant steps toward resuming commercial operations and completing a strategic merger with an IT company. This submission is part of the company's compliance with the PSX regulations under clause 5.11.3.(b).
The company is actively working to reactivate its business processes and is also preparing for the listing of its shares on the Central Depository Company (CDC). According to information available from the Pakistan Stock Exchange (PSX), the merger scheme, which has been approved by ZHCM's Board of Directors, has been filed with the Lahore High Court in accordance with relevant regulations.
The Lahore High Court has progressed in the merger proceedings by completing initial hearings and appointing Court Lawyers to oversee the Extraordinary General Meeting (EOGM) of shareholders, which sought approval for the Merger Scheme. The EOGM, conducted on 27 March 2024, resulted in shareholder approval for the scheme. The court lawyers have since submitted their report to the court.
Subsequent hearings have been held, with the most recent on 4 September 2024, where the Securities and Exchange Commission of Pakistan (SECP) was tasked with reviewing the company's response to their comments on the Scheme of Arrangement. The next hearing is scheduled for 8 October 2024, where SECP is expected to present its response.
Furthermore, the Competition Commission of Pakistan has granted approval for the business merger, indicating regulatory support for this strategic consolidation. Upon final approval by the court, the operations of the IT company will be integrated into Zahur Cotton Mills Limited, potentially leading to profitable business operations and benefits for the shareholders.
Zahur Cotton Mills Limited remains committed to ensuring timely compliance with the requirements for listing ordinary shares on the CDC and is focused on the timely commencement and resumption of its business operations to deliver a positive outcome for its stakeholders.