Demerging Real Estate Operation: PSX Decision in Streamlining Move
On February 21, 2023: The PSX Board of Directors of Pakistan Stock Exchange (PSX) authorized that PSX has formally declared the separation of its real estate from its operations.
The decision aligns with its earlier announcements in February 2018, August 2019, and June 2021.
Per the arrangement, PSX will have two segments: Demerged Undertaking and Continuing Undertaking.
The Demerged Undertaking will be merged with PSX Financial Centre (Private) Limited, a wholly-owned subsidiary of PSX, by amalgamation. PSX will retain the Continuing Undertaking.
Regarding the Demerged Undertaking, PSX will be assigned common shares of PSX Financial, which will remain a wholly-owned subsidiary of PSX.
The Scheme of Arrangement, approved by the PSX Board, will be effectuated under the Companies Act 2017.
The Scheme of Arrangement is subject to finalization by the authorized delegates of PSX, acquiring the consent of the Securities and Exchange Commission of Pakistan (SECP), approval of the requisite majority of the respective members of the companies, and sanction of the Scheme of Arrangement by the High Court of Sindh at Karachi.
Once the Scheme of Arrangement is finalized and approved, it will be sent to PSX and the members following applicable laws.
The demerger of PSX’s real estate from its operations is expected to streamline its business and enable it to focus on its core activities.