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Shifa International Hospitals Limited (SIHL) has approved a merger with its subsidiary, Shifa Medical Center Islamabad (Private) Limited (SMCI), as part of a plan to simplify its corporate structure and enhance efficiency.
The board of directors of SIHL approved the scheme of arrangement to merge SMCI into the parent company. The move aims to eliminate redundant administrative layers and inter-company relationships that have added complexity to operations.
According to the company’s announcement to the Pakistan Stock Exchange (PSX), the merger will bring several key benefits. These include:
- Operational efficiency through a unified management structure.
- Cost reduction by removing duplicated administrative expenses.
- Streamlined compliance and reporting processes.
- Better asset utilisation and improved decision-making.
- Enhanced market presence and readiness for future expansion.
By consolidating resources, SIHL expects to strengthen its financial position and achieve greater economies of scale. The company also believes the merger will enable it to seize new business opportunities and deliver more value to stakeholders.
The merger is contingent upon obtaining all required contractual, corporate, and regulatory approvals. SIHL stated that it will keep shareholders and the public informed as the process advances.
This strategic move reflects SIHL’s broader vision to streamline its structure and position itself for long-term growth in Pakistan’s healthcare sector. By integrating its subsidiary, the hospital chain aims to enhance operational transparency and improve service delivery.
