The Gadoon Textile Mills (GADT) approved ‘Scheme of Arrangement’ of merger with Fazal Textile Mills (FZTM) yesterday.
The decision comes seven months after the Yunus Brothers Group (YBG) companies first passed a resolution on May 13, 2014, to enter into discussion for evaluation of the feasibility including due diligence and valuation.
The stock prices of both companies have taken a big leap forward in the last seven months. GADT stock on May 13 stood at Rs189, which closed Tuesday at Rs299, while share in FZTM which was at Rs435 seven months ago now trades at Rs853.
The board of GADT and FZTM approved ‘Scheme of Arrangement’ whereby the textile undertaking of FZTM is to be merged with and into GADT subject to obtaining all necessary shareholders, creditors and regulatory approvals and sanctions of the scheme by the High Court along with fulfilment of related legal formalities.
