The Lahore High Court has approved the merger of Millat Equipment Limited (MEL) into Millat Tractors Limited (MTL), allowing the consolidation of both entities under a single corporate structure.
The company shared this development with the Pakistan Stock Exchange (PSX) through a notice in accordance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Rule Book of the PSX.
“The Honourable Lahore High Court, Lahore, through its judgment passed in Civil Original No. 30220/24, has allowed the petition and, inter alia, sanctioned the Scheme of Arrangement for the merger, by way of amalgamation, of Millat Equipment Limited (MEL) with and into Millat Tractors Limited (MTL) along with ancillary matters,”read the notice sent to the PSX.
MTL confirmed that the court-sanctioned Scheme of Arrangement would facilitate the full amalgamation of MEL with MTL. As per the approved scheme, MTL will issue 7.71 million new ordinary shares to MEL shareholders, excluding MTL and its nominees. The shares will be issued at a swap ratio of one MTL share for every 2.13 MEL shares, with a face value of Rs. 10 per share.
The merger aims to enhance operational efficiency and streamline business processes within the Millat Group. The record date for determining eligible MEL shareholders will be announced by MEL’s directors at a later stage.
