The Board of Directors of Reliance Cotton Spinning Mills Limited (RCSML) has approved the merger with Amer Cotton Mills (Pvt.) Limited (ACML), subject to the Companies Act, 2017 provisions.
The decision was made during a board meeting held on August 28, 2024.
“The Board of Directors of Reliance Cotton Spinning Mills Limited in their meeting held on August 28, 2024, has approved the Scheme of Compromises, Arrangement and Reconstruction for Amalgamation/Merger of Amer Cotton Mills (Pvt.) Limited (ACML) and its members with and into Reliance Cotton Spinning Mills Limited (RCSML) in terms of provisions of Sections 279 to 283 and all other enabling provisions of the Companies Act, 2017,” read the notice sent by the company to the Pakistan Stock Exchange (PSX) on Wednesday.
Under the scheme, Amer Cotton Mills will be dissolved without winding up, following an order from the Honorable High Court of Sindh.
The shares of Reliance Cotton Spinning Mills will be issued to the registered shareholders of Amer Cotton Mills based on a swap ratio certified by Shinewing Hameed Chaudhri & Co, Chartered Accountants.
The company further said that the scheme is subject to obtaining all required shareholders’, creditors and regulatory approvals and sanction of the Scheme by the Honorable High Court of Sindh along with fulfillment of contractual, regulatory and legal formalities.
