LAHORE: A bourse notification Tuesday filed by PICIC Insurance revealed the company’s board of directors had approved its merger with Crescent Star Foods (CSF) Private Limited.
The notification read “The Board of Directors approved the draft of the scheme along with the swap ratio of 466.93 shares of the Company for every 1 share of CSF held by each of the Shareholders of CSF.”
“Accordingly, the petition filed earlier in the High Court of Sindh for merger of PICIC Insurance Limited with Crescent Star Insurance Limited has been withdrawn. The Scheme will be circulated to the Stock Exchange and the shareholders in due course subject to directions/ order of the High Court of Sindh,” read the notification.
PICIC Insurance which is listed on the Pakistan Stock Exchange (PSX) had recently applied for ceasing of its insurance licence.
In an interview to Dawn on Monday, Crescent Star Insurance Limited (CSIL) CEO & Managing Director, Naim Anwar disclosed CSIL and Pakistan Industrial Credit and Investment Corporation (PICIC) Insurance Ltd merger was currently in progress.
In May, Crescent Star Insurance Limited (CSIL) announced that it had signed a memorandum of understanding (MOU) to acquire 100pc of the unlisted company Bil Foods Limited (BFL) which held franchise rights to Fat Burger in Pakistan.
CSFL also own franchise rights and operations of two brands, Bombay Chowpatty and Golden Chick with plans to launch over three dozen outlets of the latter in next five years. It also operates a local chain, ‘Café Tiramisu’.
PICIC Insurance Limited provides general insurance products and services in Pakistan. The company’s fire and property insurance segment provides coverage against damages caused by fire, riot and strike, explosion, earthquake, atmospheric damage, flood, electric fluctuation, and other related perils.
The company was founded in 2004 and is headquartered in Karachi, Pakistan.
PICIC Insurance shares were trading at Rs5.01, up Rs 1.0 at mid-day. KSE-100 index was trading at 39,603.57 points, up 175.36 points at mid-day.
Hopefully, Mr Naim Anwar and Crescent Star will also settle the insurance claims of million of rupees that are payable by PICIC Insurance to their poor customers who are waiting since many months due to this merger delay. Maybe SECP should also take a look into this as PICIC stop paying against valid claims since many months now.