The merger scheme of Waves Singer Pakistan Limited — an operational and business amalgamation of three companies — is being concluded into the final phase as the Sindh High Court has finally sanctioned the deal.
According to a notification issued to Pakistan Stock Exchange (PSX), the Sindh High Court, through Order dated 22nd May passed in J.C.M No 35/2017 as it made an order under section 279/2 of the Companies Act,2017, sanctioning the scheme of arrangement.
Accordingly, it okayed the scheme of arrangement with binding on Singer Pakistan Limited, Cool Industries (Pvt) Ltd, and Link Wel )Pvt) Ltd and Electronics Marketing Company (Pvt) Ltd, and the creditors and shareholders of the companies.
Six months ago, Singer Pakistan Limited and Cool Industries Limited – the makers of Waves brand of home appliances – and Link Well Limited agreed to merge their operations and business through share swap ratio.
These manufacturers produce home appliances such as refrigerators, air conditioners, washing machines, microwave ovens, deep freezers etc,.
The manufacturers of home appliances will be merged to form one company under the brand name of Waves Singer Pakistan Limited. However, the merged company will restructure its corporate and operational strategy with the demerger of the retail business from its overall operations and businesses to form a separate wholly owned subsidiary, Electronics Marketing Company Private Limited.
The merger is likely to have a positive impact on the industry which is getting competitive at the retail level due to increasing penetration of local and multinational brands and imported home appliances in the country.
The new company, Waves Singer Pakistan is likely to receive an edge over its competitors in the local market with consolidated synergies of three companies and their presences in the local market especially through the availability of their outlets, dealers, and services centers.