Zahur Cotton Mills Limited (ZCM) has announced the successful completion of a scheme of arrangement, as sanctioned by the Lahore High Court (LHC). Under the scheme, ZCM will merge with Itanz Technologies Limited (ITANZ), a move aimed at aligning its operations with the growing demand for information technology and consultancy services.
The merger, effective from September 30, 2023, will lead to a change in ZCM’s name to Itanz Technologies Limited. The company will also shift its principal business to focus on IT consultancy and technology-enabled services, including software development and system implementation.
The court order will result in an increase in ZCM’s authorised share capital by 100 million shares, bringing the total to 120 million shares. The paid-up capital of the company will rise to 107.82 million shares, with a new share ratio set for the merger.
ITANZ shareholders will receive 1,959.23 shares of ZCM for every share held in ITANZ.
This significant restructuring aims to expand ZCM’s scope in the IT sector while continuing to leverage its existing business foundations. Following this merger, ZCM will also issue a separate notice for book closure to complete all the necessary corporate formalities.
ZCM intends to continue with its strategic growth plans and ensure a smooth integration of the merged operations, which is expected to yield long-term benefits in terms of market positioning and financial performance.