DH Partners, Cyan to merge into Dawood Lawrencepur

DH Partners Limited (DHPL) has announced plans to amalgamate with Cyan Limited into Dawood Lawrencepur Limited (DLL) through a court-approved Scheme of Arrangement.

DHPL announced the development via a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

Under the proposed scheme, subject to the requisite corporate and regulatory approvals, including the sanction of the Islamabad High Court, Dawood Lawrencepur will be the surviving listed entity and will issue its shares to the shareholders of DH Partners and Cyan as consideration for the amalgamation.

Shareholders of DH Partners, excluding Dawood Lawrencepur, will receive 4.7724 ordinary shares of DLL for every 100 ordinary shares held in DHPL, while Cyan shareholders will be “issued 7.2974 ordinary shares of DLL for every 100 ordinary shares” held.

“These swap ratios have been approved by the Board of Directors of DHPL based on audited special purpose financial statements of DHPL, Cyan and DLL for the period ended October 31, 2025, valuations of the immovable properties carried out by external independent valuers, and calculations performed by an independent financial advisor jointly appointed by the companies for the scheme,” read the notice.

According to the notice, the proposed amalgamation is intended to consolidate entities engaged in substantially similar business activities into a single listed platform, thereby enabling a unified strategic direction and operational structure.

“The amalgamation is expected to align the overlapping business models of the companies, strengthen the balance sheet of the surviving entity through an enhanced equity base and a more diversified pool of assets, and improve its borrowing capacity and financial resilience.

“The integration of governance systems, controls, and decision-making processes is expected to streamline oversight and create a more efficient governance framework.

“The amalgamation is also expected to generate cost efficiencies through the elimination of duplicative functions, reduced administrative and regulatory expenses, and improved utilisation of resources.

“Further, consolidation of investment holdings into a single listed entity is anticipated to support more effective capital allocation, broaden the shareholder base, and enhance visibility and market depth,” read the notice.