PICIC Insurance Limited (PSX: PIL) reported significant delays in its merger process with Crescent Star Foods (Pvt.) Limited (CSF), citing pending approvals from the Sindh High Court and the Securities and Exchange Commission of Pakistan (SECP).
According to a progress report submitted to PSX, PIL’s merger process, initiated in 2017, remains unresolved despite the company’s concessions to all SECP objections.
Under the merger plan, CSF will merge into PIL. However, High Court approval is pending due to issues surrounding Letters of Credit (LCs). PIL has also appealed to the SECP merger committee for expedited approval.
The merger petition, filed in December 2017 after shareholder approval, faced objections from SECP, leading to a seven-year delay. PIL emphasized that the prolonged legal process hampers business activity and affects shareholder interests, urging SECP to update the court on the company’s compliance to facilitate progress.
PIL reiterated its commitment to resuming operations once the Scheme of Arrangement is approved.
