KARACHI, Feb 28: At recently held extraordinary general meetings of Capital Assets Leasing Corporation Limited (Calcorp) and International Multi Leasing Corporation Limited (IML) shareholders in both companies approved the merger between the two companies.

A press release issued by the company on Thursday, said that the Lahore High Court had issued orders for calling extraordinary general meetings of both companies. “The Court-appointed co- ordinator has submitted his report and the Court is expected to give its formal consent on March 4,” the company said.

As per the Scheme of Amalgamation, IML would be dissolved without going into liquidation and be merged into Calcorp, which would go to create Calcorp Multi Leasing Limited. The swap ratio was agreed at 1:1, the company said and added that the board of directors would comprise seven directors of whom four would be nominees of Calcorp and three of IML.

The company observed that Calcorp and IML had their Registered Offices at Lahore. Calcorp’s Principal Office was located in Karachi. The balance sheet size of the merged company—Calcorp Multi Leasing Limited— as per their six months accounts to end- December 2002 was Rs461 million. “The new entity will be compliant with the SECP’s minimum capital requirement of Rs200 million through this merger and with the issue of Rs5.019 million right shares of Calcorp at a discount of 30 per cent in three tranches, which is currently in progress,” the company said.