Millat Tractors Board Approves Business Expansion Plan to Amalgamate Subsidiary

Millat Tractors Limited (PSX: MTL) has considered and approved a business expansion plan to amalgamate its subsidiary Millat Equipment Limited with and into MTL w.e.f. January 01, 2024, the company informed the main bourse on Monday. The Amalgamation would lead to an optimized manufacturing process and improved product quality. It will further increase the asset base and size of MTL and as a result, MTL will be in a position to effectively and efficiently benefit from economies of scale with respect to the combined business, the filing added. “Further business expansion opportunities for MTL are also expected to arise due to this proposed amalgamation. Please note that the proposed transaction would be subject to receipt of all requisite corporate and regulatory authorizations, consents and approvals. We will continue to keep you informed of the progress in respect of this matter,” the filing further said. MTL is principally engaged in assembling and manufacturing of agricultural tractors, implements and multiapplication products. The Company is also involved in the sale, implementation and support of IFS applications in Pakistan and abroad. At the time of filing, MTL’s scrip at the bourse was Rs. 609, up 1.06 percent or Rs. 6.4 with a turnover of 175,188 shares on Monday.