TPL Life Insurance Limited has entered into a Memorandum of Understanding (MoU) with Dar Es Salam Textile Mills Limited to explore the possibility of a potential merger.

The development was shared by TPL Corp, the parent company of TPL Life Insurance, in a filing to the Pakistan Stock Exchange (PSX) on Tuesday.

The notice said that the parties “will explore the possibility of and enter into discussions and negotiations for a potential merger of TPL Life and DSML, by way of a scheme of arrangement.”

TPL Corp, which is principally engaged to make investments in group and other companies, shared that the proposed transaction is subject to finalisation of deal terms, transaction documents and obtaining of all requisite corporate and regulatory approvals, consents and authorizations being obtained by both DSML and TPL Life.

Meanwhile, DSML, which is involved in the business of manufacturing and selling yarn, remains on the defaulter list on PSX.