Crescent Star Insurance Limited has announced that the Sindh High Court has approved a scheme of arrangement for the merger of its subsidiary, Crescent Star Foods (Pvt) Ltd, with PICIC Insurance Limited, according to a notice submitted to the Pakistan Stock Exchange.
Under the approved scheme, Crescent Star Foods will be merged into PICIC Insurance, which will remain the surviving listed entity.
As part of the transaction, PICIC Insurance will issue approximately 7.9 billion ordinary shares to the shareholders of Crescent Star Foods, including Crescent Star Insurance, based on the approved share swap ratio.
Following the merger, Crescent Star Insurance’s investment in its subsidiary will be replaced by shareholding in PICIC Insurance, effectively consolidating its position within the listed insurance entity.
The company described the transaction as a strategic move to unlock value from its subsidiary and strengthen its presence in the capital markets. The implementation of the merger remains subject to completion of regulatory and procedural requirements, including filings with the registrar and credit of shares into shareholders’ CDC accounts.