Reliance Cotton Spinning Mills Limited (RCSML) has announced that its Board of Directors has approved a scheme for the amalgamation and merger of the company with Sapphire Fibres Limited (SFL).
The decision was disclosed to the Pakistan Stock Exchange (PSX) in accordance with regulatory requirements.
According to the official notice, the merger will proceed under Sections 279 to 283 and Section 285 of the Companies Act, subject to necessary approvals from shareholders, creditors, regulators, and the sanction of the Sindh High Court.
Once finalized, RCSML will be merged into SFL, and shares of Sapphire Fibres Limited will be issued to RCSML shareholders based on a swap ratio determined by Shinewing Hameed Chaudhri & Co, Chartered Accountants.
The merger will result in the dissolution of Reliance Cotton Spinning Mills Limited without winding up, as per the court’s order. The scheme will be circulated to the PSX and shareholders in due course, following further directions from the Sindh High Court and in line with applicable laws.