Sindh High Court has sanctioned the scheme of merger between the two insurance companies—SPI Insurance Company and The United Insurance Company of Pakistan Limited, according to the notification issued to Pakistan Stock Exchange (PSX).
The Honorable High Court of Sindh at Karachi has passed Order J.C.M #49 of 2021 dated January 23, 2023, under sections 279 to 283 and 285 of the Companies Act, 2017 sanctioning the merger scheme.
This is to make the merger binding on SPI Insurance Company Limited and The United Insurance Company of Pakistan Limited, and the creditors and shareholders of brother companies, along with all other concerned persons.
The merger will result in the consolidation of the business of UIC and SPI that will bring economies of scale obtaining optimal operating scale and thereby reducing average unit costs of each insurance policy.
The entire scheme comprising the merger of all the assets, liabilities, and obligations of SPI shall, as at the Effective Date (as defined later in this Scheme), stand merged with, transferred to, vested in, and be assumed by UIC.
Upon the merger and transfer of SPI in the manner stated under this scheme, SPI shall be dissolved without winding up.
