KARACHI, Dec 3 Johnson & Phillips (Pakistan) Limited (J&P) announced on Thursday that the board of directors of the company had unanimously approved the proposed amalgamation of (i) Johnson & Phillips Industries (Pakistan) Limited; (ii) Johnson & Phillips EMO Pakistan (Pvt) Limited and (iii) Elmetec (Pvt) Limited.

Following the proposed merger, J&P would emerge as the surviving entity. The company said that the amalgamation would take place in accordance with the Scheme of Merger and provisions of the Companies Ordinance, 1984.

Investors showed little interest in the development, for the stock in the company seldom comes up for trading at the exchanges. In the period between Jan-Nov 2009, only 0.3 million shares of the 5.45 million paid-up stock of the company were traded at the KSE. The scrip is currently quoted at Rs15.65.

The company is engaged in manufacturing, installing and selling of electrical equipments. The company's subsidiaries include Johnson & Phillips Industries (Pakistan) Limited, Johnson & Phillips Transformers (Private) Limited and Johnson & Phillips EMO Pakistan (Private) Limited.

Financial results for the half year ended Dec 31, 2008, declared on March 3, showed the company to have made sales amounting to Rs65 million and after-tax-profit of Rs1.1 million, producing earning per share of Re 0.22.

The company, one of the giants on the cable and electrical goods sector of yesteryear, is thought to have fallen upon hard times. As of June 30, 2008, two of the company's subsidiaries Johnson & Phillips Industries (Pakistan) Limited and Johnson & Phillips Transformers (Private) Limited had ceased production.

The subsidiaries were engaged in the business of manufacturing and sale of electrical and mechanical equipments/appliances and participation in engineering industrial projects.

Interestingly, J&P claims to be the first foreign company that opened a sales office in the country following the creation of Pakistan in 1947. Among its customers, the company counts Pakistan Railways; Water & Power Development Authority (Wapda); KESC; PEPCO and others.

Analysts said that the merger of group entities appears to be an attempt to consolidate assets to keep afloat in times of financial distress.