The Colony Textile Mills Limited (CTML), the Colony Mills Limited (CML) and Colony Industries Limited (CIL) are going to merge, Pakistan Today has learnt. The proposed merger, which if accomplished would see CTML acquiring CML and CIL, was approved by the Board of Directors of the Colony Mills in their adjourned meeting.
“The board… has approved the draft scheme of arrangement pertaining to the merger of by way of amalgamation of Colony Mills Limited and Colony Industries Limited with and into the Colony Textile Mills Limited,” the CML informed the Securities and Exchange Commission of Pakistan and its shareholders at Karachi Stock Exchange.
The company’s board has also decided that the swap ratio for the merger would be based on the break-up values of the respective companies that would be determined by the statutory auditors of the acquirer, CTML, as at the ‘effective date’ of April 30, 2011. “After adjusting the carrying value of assets at fair values to ascertain by the independent valuer(s) as on that date,” the company said through reference number CML-KSE/11.
The scheme would, however, be subject to such changes and modifications as may be advised by the legal counsel and consultants and as may be required by the shareholders, regulatory bodies and the Lahore High Court. “The petition in terms of Section 284 and 288 of the Companies Ordinance 1984 would be filed with the LHC in due course,” the company stated.
Colony Textile to acquire CML, CIL
