CCP approves merger, allowing UDL International Limited’s listing on PSX

First UDL Modaraba merges with and into UDL International Limited

ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval for the merger of a listed company, M/s. First UDL Modaraba, with and into a related public unlisted company, M/s. UDL International Limited. The merger approval will lead to the listing of the previously unlisted UDL International’s unlisted company on the Pakistan Stock Exchange.

On 17 October, 2022, a board meeting of First UDL Modarba decided to approve a detailed structure of conversion of First UDL Modaraba with and into UDL International Limited. The company subsequently got an approval from the SECP and other relevant authorities till it got the final nod from the CCP, on Thursday.

In its notice to the Pakistan Stock Exchange, On December 5, First UDL Modaraba informed that the merger transaction was authorised by the CCP on the 1st of December.

As per the CCP, the merger reflects the growing confidence of the corporate sector in the Pakistan Stock Exchange. It also comes at a time when the KSE-100 index surpasses the 64,000-point mark.

As per details shared by CCP, established under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, First UDL Modaraba has a registered office located in Karachi. UDL International Limited, also headquartered in Karachi, engages in diverse activities such as sale, purchase, import and export, general trading, and the supply of general orders and commodity products. It is a perpetual, multipurpose and multidimensional Modaraba engaged in providing finance under Murabaha and Musharakah arrangements, Ijarah, commodity trading, and trading in listed and non-interest bearing securities.

After merging, UDLIL shall transfer the Musharakah portfolio of FUDLM, to its wholly owned subsidiary, M/s. UDL Financial Services Limited (“UDLFSL”).

The phase 1 review of the merger application determined that the proposed transaction will not result in the dominance of UDL International Limited in the relevant market post-transaction. Therefore, the merger was officially authorised.

Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

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