Shifa International Hospitals to buy out minority shareholders in subsidiary SMCI

Shifa International Hospitals Limited (SIHL) plans to buy out all the shares owned by minority shareholders in its subsidiary, Shifa Medical Centre Islamabad (Private) Limited (SMCI), as part of a broader strategy to streamline operations and support future growth.

SIHL shared the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“The Board of Directors of SIHL, in its meeting held on 10 May 2025, has considered and approved proposal to purchase the shareholding of all the shares held by all the minority shareholders in its subsidiary company, SMCI by negotiating and entering into share purchase agreements and executing share transfer deeds with all the relevant parties.

“The transaction would lead to inter alia a consolidation of SMCI into a wholly-owned subsidiary of SIHL,” read the notice.

This would enable SIHL to ultimately merge with SMCI as a wholly owned subsidiary.

“Apart from a simplification of the corporate structure by eliminating redundant administrative layers and intercompany relationships, the transaction and its subsequent proposed merger will further increase asset base and size of SIHL and as a result, SIHL will be in a position to effectively and efficiently benefit from economies of scales with respect to the combined business,” read the notice.

The company also expects that further business expansion opportunities for SIHL would arise due to this proposed transaction. However, the transaction would be subject to receipt of all requisite corporate and regulatory authorisations, consents and approvals.

Shifa International Hospitals Limited was incorporated in Pakistan as a public limited company in 1987 and converted into a public limited company in 1989.

The listed company is engaged in establishing and running medical centres, hospitals, pharmacies, and lab collection points across Pakistan.