Islamabad High Court clears Shifa Medical Center merger into Shifa International Hospitals

The Islamabad High Court (IHC) has sanctioned the scheme of arrangement for the merger of Shifa Medical Center Islamabad (Private) Limited (SMCI) into Shifa International Hospitals Limited (SIHL).

In a notice submitted to the Pakistan Stock Exchange (PSX), SIHL said the court approved the merger scheme in Companies Original No. 02 of 2026.

The company disclosed the development under Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1(a) of the PSX Rule Book.

The court’s decision follows SIHL’s earlier approval of a scheme of arrangement to absorb SMCI into the listed parent company. Its Board of Directors considered and approved the proposed amalgamation at a meeting held on October 25, subject to contractual, corporate and regulatory requirements.

SIHL had said the merger would simplify its corporate structure by removing separate administrative layers and inter-company arrangements. The integration is also expected to reduce costs, streamline regulatory compliance and centralise the management of assets and liabilities.

The company expects the combined structure to improve asset utilisation, financial reporting and decision-making while expanding SIHL’s asset base and allowing the hospital group to benefit from economies of scale.

As part of the process, Shifa International Hospitals approved a transaction involving 105.8 million shares of SMCI to secure full ownership of the subsidiary at an Extraordinary General Meeting.

Before the transaction, SIHL held 56% of SMCI, while Interloop Holdings owned 40% and other minority shareholders held the remaining 3%.

The company decided to acquire the outstanding interest after an improvement in its core operations renewed its focus on expansion. The COVID-19 pandemic had disrupted earlier plans, macroeconomic instability and sharp currency depreciation.

SIHL expects full ownership to improve operational and administrative efficiency, simplify the group’s structure and provide tax benefits during the initial years, when SMCI is projected to record losses.

The acquisition is expected to cost Rs1.7 billion, in addition to the Rs1.3 billion already invested in the project.

SMCI’s hospital building comprises five floors and two basements and has received the required regulatory approvals. The facility is located about four kilometres from SIHL’s main hospital in Islamabad, positioning it to support patient care and improve internal logistics between the two sites.

The company has said the acquisition and subsequent operations will be financed entirely through internal cash flows, supported by its balance sheet and improving profit margins.

The amalgamation will formally bring SMCI’s assets, operations and liabilities under SIHL, while creating further opportunities for expansion within the hospital group.