Sapphire Group is combining two of its listed textile vehicles, moving to fold Reliance Cotton Spinning Mills Ltd (RCSML) into Sapphire Fibres Ltd (SFL) through a court‑sanctioned scheme of arrangement. In coordinated notices to the Pakistan Stock Exchange (PSX), the two companies said their boards have approved a “Scheme of Compromises, Arrangement and Reconstruction” under Sections 279–283 read with Section 285 of the Companies Act, with the Honourable High Court of Sindh to supervise and sanction the process.
The structure is straightforward: RCSML will merge with and into SFL, and SFL shares will be issued to RCSML’s registered shareholders against a swap ratio to be certified/determined by M/s Shinewing Hameed Chaudhri & Co., Chartered Accountants. Upon effectiveness of the court’s order, RCSML will stand dissolved without winding‑up. The companies added that the full text of the scheme will be circulated to shareholders and the PSX in due course as directed by the court. 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
