KARACHI: The Board of Directors of The United Insurance Company Limited (UNIC), a public listed company at Pakistan Stock Exchange (PSX), has approved merger draft of SPI Insurance Company Limited (SPI) here on Thursday.
According to the notification of the company issued at PSX Website on Friday, the Board of Directors of UNIC approved the draft scheme of Merger of SPI Insurance Company Limited with and into the United Insurance Company of Pakistan Limited.
The draft scheme of merger subjects to obtaining all necessary shareholders and regulatory approvals from the Shareholders of the company and the regulators including SECP.
The board of directors said, “the entire undertaking comprising all the assets, liabilities and obligations of SPI shall, as at the effective date (as defined later in this scheme), stand merged with, transferred to, vested in, and be assumed by UIC.”
The Board proposed that shares of UIC shall be issued to the shareholders of SPI in accordance with this Scheme and upon the merger and transfer of SPI in the manner stated under this Scheme, SPI shall be dissolved without winding up.
It further claimed that this Scheme, if approved by the respective shareholders of UIC and SPI, through a special resolution, and sanctioned by the Commission by an order passed in this respect, it will be binding on UIC and SPI along with all the shareholders, employees, policyholders, contracting parties, tax authorities and any other regulatory / statutory bodies of or with respect to UIC and SPI (as applicable).
The business carried on by UIC is substantially similar to the business that is being carried on by SPI. Merger of the companies will result in the shareholders holding shares in a single company carrying on the same insurance business.
The UNIC was incorporated on October 20, 1959, in Pakistan as a Public Limited Company under the Defunct Companies Act, 1913, now the Companies Act, 2017.
The principal activity of the Company is General Insurance Business and it qualifies as a domestic insurance company under the Insurance Ordinance, 2000 and undertakes Fire & Property Damage, Marine Aviation & Transport, Motor, Crop and Miscellaneous General Insurance.
The Company has been allowed to carry on Window Takaful Operation on August 18, 2014 by the Securities and Exchange Commission of Pakistan (SECP) under the Takaful Rules, 2012.
The Company has not transacted any insurance business outside Pakistan.
The share of UNIC is being traded at Rs 7.72/share at PSX trading at 10:30.