KARACHI, Nov 28: While Glaxo Wellcome is in the throes of amalgamation of business with Smith Kline & French and Beecham Pakistan, Abbott Laboratories (Pakistan) Limited—another listed pharmaceutical company— has unveiled plans of expansion, extension and upgradation of operations at a cost of Rs330 million. The plan is expected to be completed by 2004.

The Board of directors of Abbott Pakistan, which met on Wednesday, decided to consolidate the two manufacturing facilities now owned by Abbott, following the merger of former Knoll Pharmaceutical Limited with Abbott Pakistan Limited. The consolidation of manufacturing facilities of the two companies (located separately at Korangi Industrial Area, Karachi and Hyderabad Road, Landhi, Karachi) was envisaged to result in expansion, extension and upgradation of Abbott Pakistan’s existing manufacturing facility located at opposite Radio Pakistan Transmission Centre, Hyderabad Road, Landhi, Karachi.

Abbott said that the impact on employees would be minimal as the consolidated facility was expected to accommodate all employees. “We expect to accommodate any redundant positions through normal attrition between now and the opening of the facility in 2004,” the company assured. It said that the new facility would allow Abbott to achieve manufacturing and operational efficiencies, which would enable it to compete more effectively.

In another development, Glaxo Wellcome Pakistan Limited announced on Thursday that a meeting of the Board of directors would be held on December 3 to consider and pass resolution for allotment of shares of Glaxo Wellcome to qualifying shareholders of Smith Kline & French of Pakistan Limited and those of Beecham Pakistan (Private) Limited. The issue of shares would be in accordance with the Scheme of Arrangement dated May 30, 2002, for the Amalgamation of SK&F and Beecham with Glaxo Wellcome. The Scheme was sanctioned by the Sindh High Court by its Order dated October 23, 2002.

By virtue of the Scheme of Amalgamation, entire undertaking of SK&F and Beecham—inclusive of all properties, assets, rights, liabilities and obligations—would be transferred to and vested in Glaxo.

In respect of every share of Rs100 held in Beecham, the qualifying shareholders would be allotted 2.5 shares of Rs10 each in Glaxo. For each share held in SK&F of Rs10 each, qualifying shareholders would be issued one share of Rs10 each in Glaxo. Following the allotment of shares in Glaxo, SK&F and Beecham would be dissolved, without winding up.

Clause 17 of the Scheme of Amalgamation states: “On and from the Completion date, Glaxo Wellcome will take in employment all such employees of SK&F and of Beecham, who have accepted employment with Glaxo Wellcome in lieu of their employment with SK&F and Beecham, on the terms and conditions applicable to them in SK&F or Beecham, immediately preceding the completion date including those relating to entitlements arising upon termination of service to payment of provident fund, gratuity, redundancy and pension, as applicable, and with the benefit of past service in SK&F or Beecham, as the case may be.”