Karachi December 21 2023: Cnergyico PK Limited board approves restructuring of the group companies to enhance the commercial structure and corporate governance of different business units.
Share price of the company gains 48.78 percent since January 2023, according to data reported by Pakistan Stock Exchange.
The Board of Directors of Cnergy in meeting held on December 21, 2023, has approved the draft Scheme of Arrangement to be entered into between the Company and its wholly owned subsidiaries i.e. (i) Bosicorco ORB 1 (Private) Limited (ORB 1); (ii) Bosicorco ORB 2 (Private) Limited (ORB 2); (iii) Bosicorco OMB 1 (Private) Limited (OMB); (iv) Bosicorco OSB 2 (Private) Limited (OSB); (v) Bosicorco CPB 1 (Private) Limited (CPB); and (vi) Cnergyico lsomerate PK (Private) Limited (ISOM), laid before the Board of Directors of the Company (the Scheme), pertaining to the proposed corporate reorganization/ restructuring of the Company and its wholly owned subsidiaries.
The restructuring is subject to completion and finalization of the Scheme, obtaining all necessary members’, creditors’ and regulatory approvals, and the sanction of the Scheme by the High Court of Sindh at Karachi, along with fulfilment of related legal formalities in accordance with applicable laws.
In terms of the Scheme, it is intended, inter alia, that certain business units/undertakings of the Company shall be segregated and demerged/carved out from the Company, which undertakings (including the respective assets, liabilities and obligations comprising thereof) shall be merged with and into, and stand vested in, ORB 1, ORB 2, OMB, OSB and CPB respectively. Furthermore, ISOM, being a wholly owned subsidiary of the Company shall be merged with and into ORB 2.
The Board observed that the main objective of the Scheme is to enhance the commercial structure and corporate governance of the undertakings and business units, ultimately achieving greater efficiencies for all entities involved, leading to increased equity and growth. Additionally, the Scheme will enable each company’s management to focus on their respective segments/ business units, promoting better development and performance, and effectively implementing the intended arrangements. The Scheme is expected to result in the businesses being managed and carried out in a more effective and efficient manner, thus benefitting the members of the Company.
The Board has authorized the Company inter alia to finalize and execute the Scheme and file a petition before the High Court of Sindh at Karachi.
The Scheme will be circulated to the Exchange and the members in due course, subject to the directions I order of High Court and in accordance with applicable laws.
