Systems Limited has secured approval from the Lahore High Court for its merger with Confiz Pakistan (Private) Limited. This decision clears the final legal hurdle for a transaction first approved by the company’s board in December 2025.
In a notice sent to the Pakistan Stock Exchange (PSX), Systems Limited confirmed that the court has sanctioned the Scheme of Arrangement. This scheme governs the full merger of Confiz into Systems Limited.
The board had earlier approved the acquisition on December 10, 2025. It was carried out under Sections 279 to 283 and 285(8) of the Companies Act, 2017. The deal was planned as a merger and amalgamation structure from the beginning.
However, the transaction depended on several conditions. These included approvals from shareholders, creditors, and regulators. Legal formalities also had to be completed before final approval. Systems Limited now says all required approvals have been obtained. This includes regulatory clearances and stakeholder consents.
The Lahore High Court issued its order on May 6, 2026. The case was registered as C.O. No. 4862 of 2026. It involved both Systems Limited and Confiz Limited. The court approved the petition jointly filed by both companies. It also sanctioned the merger scheme under the legal framework.
In its observation, the court stated that the arrangement does not harm stakeholders. It described the scheme as not prejudicial to shareholders and creditors. With this order, the merger is now effective from January 1, 2026. This gives the transaction a retrospective legal effect.
After this approval, both companies will move to the next phase. They will set the record date for the merger. They will also identify eligible Confiz shareholders.
In addition, the companies will calculate shareholder entitlements under the approved scheme. Systems Limited will then issue shares to Confiz shareholders. The share issuance will follow the terms defined in the Scheme of Arrangement. This step will complete the merger process between the two companies.
