In a move that rationalises one of Pakistan’s most sprawling corporate structures, Jahangir Siddiqui & Co Ltd (JSCL) has announced that it will fold Quality Energy Solutions (Pvt) Ltd (QES) into its bigger sister company Energy Infrastructure Holding (Pvt) Ltd (EIHPL).
The Securities & Exchange Commission of Pakistan (SECP) approved the scheme of amalgamation on 15 July, and the merger will take economic effect from 31 May 2025. A notice filed with the Pakistan Stock Exchange on 16 July confirmed that, following court endorsements, “all assets, liabilities, rights and obligations” of QES will vest in EIHPL, leaving the latter as JS Group’s single umbrella for power, petroleum and infrastructure investments.
Although both companies are wholly-owned and therefore elide into JSCL’s consolidated accounts, the transaction cleans up a balance-sheet that had become cluttered with specialist micro-vehicles. As at 30 September 2024, EIHPL carried net assets of Rs4.31 billion, underpinned by land for oil-storage depots and long-term equity in fuel-logistics ventures. QES meanwhile held a modest Rs32.37 million in net assets, largely cash and government debt securities warehoused for prospective renewable projects.
Group-wide numbers dwarf those figures but underline how small the energy portfolio still is: in the nine months to September 2024 JSCL booked Rs182.5 billion in consolidated revenue, yet only Rs631 million (0.35%) came from the energy, infrastructure and petroleum segment. Management has long argued that tidying the corporate chart is a prerequisite for growing that slice of the pie. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
