The Board of Directors of Secure Logistic Group Limited (SLGL) and Trax Online (Pvt.) Limited have agreed to combine the businesses of SLGL and TRAX to merge their operations, according to a stock filing on Thursday.
This merger, expected to be finalised by December 31, 2024, aims to create a powerhouse in logistics services, capitalizing on synergies between the two companies.
“Presently it is anticipated that the combination of the business to be achieved through a merger/amalgamation of TRAX into SLGL or one of the wholly-owned SLGL subsidiaries through a Scheme of Arrangement prepared under the provisions of Sections 279-282 of the Companies Act 2017 to be approved by the respective shareholders of SLGL and TRAX and sanctioned by a competent High Court, subject to requisite regulatory approvals,” read SLGL’s notice to the Pakistan Stock Exchange.
Both companies will endeavour to execute definitive agreements and implement the process of Merger by December 31, 2024.
The parties have documented all the key terms and conditions and the Term Sheet has been approved by the respective Board of Directors.
These terms and conditions will inter-alia form the basis of entering into definitive agreements between the Parties and preparation of the Scheme to be submitted for sanction by the competent High Court.
The Parties are of the view that the Merger will transform the combined entity into a leading 4 PL Logistics player. The complimentary business lines, savings through reduction in overlapping fixed and variable costs and a range of synergies that inter-alia includes SLGL’s commercial assets and TRAX’s strong technology platform will together lead to the maximization of the combined entity’s top and bottom lines.
The combined entity is expected to serve in excess of 300 established corporate clients along with thousands of small and medium enterprises across all business lines and segments.
SLGL is involved in long-haul and distribution segments of logistics, asset tracking (IOT) and security services with a 14-year-long operational history.
TRAX is a tech-enabled supply chain leader involved in logistics services including; Last Mile, Retail, Bulk, Banking, International, Warehousing and fulfilment. Its technology platforms facilitate end-to-end logistic solutions for B2B merchants involving deliveries and payments. It has over 12,000 active clients that are served through a delivery network in more than 650 cities and towns across the country. TRAX has booked and delivered more than 32 million packages.