PICIC Insurance Limited (PSX: PIL) has announced significant delays in its merger with Crescent Star Foods (Pvt.) Limited (CSF), citing pending approvals from the Sindh High Court and the Securities and Exchange Commission of Pakistan (SECP).
According to a progress report filed with the PSX, the PIL merger process, which began in 2017, remains unresolved despite the company’s waivers of all SEC objections.
Under the merger plan, CSF will be merged into PIL. However, the Supreme Court’s approval is pending due to issues surrounding letters of credit (LCs). PIL has also appealed to the SECP Merger Committee for urgent approval.
The merger application, which was filed in December 2017 after shareholder approval, faced objections from the Securities and Exchange Commission, resulting in a seven-year delay. PIL stressed that lengthy legal proceedings hamper business activity and affect shareholders’ interests, and urged the SEC to keep the court informed of the company’s compliance to facilitate progress.
PIL confirmed its commitment to resume operations once the arrangement plan is approved.