The Board of Directors of Ghani Chemical Industries Limited (PSX: GCIL) has approved a Demerger/Merger Scheme of Compromises, Arrangement, and Reconstruction. This strategic move aims to list Ghani ChemWorld Limited (GCWL) on the Pakistan Stock Exchange (PSX).

The approval was granted during a board meeting held today, as disclosed in a stock filing to the Pakistan Stock Exchange (PSX) on Monday.

The implementation of this Scheme is contingent upon the approval of the Lahore High Court and other related regulatory matters.

Key aspects of the Scheme include:

• The separation of the Calcium Carbide Project, currently being developed by GCIL at the Hattar Special Economic Zone, is to be transferred to Ghani ChemWorld Limited (GCWL), which is presently a wholly-owned subsidiary of GCIL.
• The merger of the remaining assets of Ghani Products (Private) Limited (GPL), an associated company, into GCIL, based on a one-to-one swap ratio.
• The issuance and allotment of Partially Redeemable Shares of GCWL to GCIL shareholders at a ratio of 50:1,000. This translates to Rs. 5,000 worth of partially redeemable shares for every 1,000 ordinary shares of GCIL, which have a face value of Rs. 10,000. These shares have a nominal value divided into a redeemable portion of Rs. 90 per share and an irredeemable portion of Rs. 10 per share.
• The issuance and allotment of 70 million additional ordinary shares of GCIL to GCWL.
• The listing of GCWL on the PSX following the submission of the necessary documentation.
• The Scheme will be shared with the PSX and GCIL shareholders in due course, subject to the directives of the Lahore High Court and compliance with applicable laws.

At the time of the filing, GCIL’s stock was trading at Rs. 10.92, marking a decline of 2.93 percent or Rs. 0.33, with over 2.25 million shares traded on Monday.