Shifa International Hospitals Limited (SIHL) has approved a scheme of arrangement to merge its subsidiary, Shifa Medical Center Islamabad (Private) Limited (SMCI), into the parent company, according to a notice sent to the Pakistan Stock Exchange (PSX) on Monday.
The company informed the PSX that the Board of Directors, in its meeting held on October 25, “has considered and approved, subject to the fulfillment of all applicable contractual obligations and applicable laws on SIHL, a scheme of arrangement, pursuant to which SIHL will proceed with a proposed merger of its subsidiary company, Shifa Medical Center Islamabad (Private) Limited, into SIHL.”
The company said the proposed amalgamation “would lead to simplification of the corporate structure by eliminating redundant administrative layers and inter-company relationships.” It added that the integration would help ensure “operations are more efficient, costs associated with maintaining separate entities are reduced, and compliance processes are simplified.”
According to the notice, the merger will also consolidate resources, enabling “better asset utilization, improved financial reporting through unified statements, and centralized management of liabilities.” The unified structure, it said, will enhance decision-making, productivity, and strengthen the company’s market presence.
SIHL stated that the amalgamation “will further increase asset base and size of SIHL and as a result SIHL will be in a position to effectively and efficiently benefit from economies of scale with respect to the combined business.” The merger is also expected to create new business expansion opportunities for the hospital group.
The company clarified that the proposed merger remains “subject to receipt of all requisite contractual, corporate and regulatory authorizations, consents, and approvals.” It said further updates will be shared with the exchange as the process advances.
