Johnson & Phillips Industries (Pakistan) Ltd, Johnson & Phillips EMO Pakistan (Pvt) Ltd and Elmetec (Pvt) Ltd will be merged with and into Johnson & Phillips (Pakistan) Ltd, to make a large resource-based company. According to the scheme of arrangement sent to KSE here on Friday, the merger would lead to an increased asset base and the size of the entity.
It will also assist the management to have access to more external funds at competitive rates and the larger size of the entity would provide greater comfort to the potential creditors. The merger would improve growth prospects and enable the company to undertake larger assignments. The authorised share capital of Johnson & Phillips (Pakistan) Ltd after the merger will be enhanced from Rs 80 million to Rs 400 million. The merger is subject to the sanction of the court of law, SECP and meeting of other regulatory requirements.
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