The Board of Directors (BoD) of Arif Habib Corporation Limited (AHCL), a Pakistani business conglomerate, has authorized the company to enter into an arrangement with its subsidiary, Arif Habib Limited (AHL).

AHCL shared the development in its filing to the Pakistan Stock Exchange (PSX) on Friday.

“This is to update that during today’s emergent meeting of the BoD, the board has authorized AHCL to enter into an arrangement with its subsidiary, Arif Habib Limited (AHL), in terms of a Scheme of Arrangement (Scheme) under Sections 279 to 283 and 285 of the Companies Act, 2017, involving the demerger of certain non-core business, including assets, liabilities and obligations, from AHL, and merger/amalgamation of the same with and into AHCL,” read the notice.

Under the arrangement, a corporate restructuring of the said companies and their members, along with all ancillary matters will be constituted, read the notice.

“It is proposed that shares of AHCL will be issued to the shareholders of AHL (other than AHCL itself) on the basis of a swap ratio of 0.8673; i.e. 86.73 ordinary shares of AHCL will be issued for every 100 ordinary shares of AHL held by each AHL shareholder at the time (other than AHCL itself), in accordance with the scheme,” read the notice.

AHCL said that the arrangement is subject to the completion of necessary corporate and regulatory formalities, including obtaining requisite approvals from the relevant stakeholders and regulators, and sanction of the scheme by the Sindh High Court (SHC).

For this purpose, the board has authorized AHCL to file a petition with the SHC.