The Lahore High Court (LHC) has sanctioned a demerger/merger scheme for the transfer of the whole of the business and undertaking of the “calcium carbide project” of Ghani Chemical Industries Limited (GCIL) to its wholly-owned subsidiary, Ghani ChemWorld Limited (GCWL).
The listed company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“We are pleased to inform you that the Honorable Lahore High Court, Lahore vide its order dated February 20, 2025 (issued on March 07, 2025) has sanctioned the demerger/merger scheme of compromises, arrangement and reconstruction for the transfer of whole of the business and undertaking of “calcium carbide project” of GCIL with and into GCWL against allotment of 500 shares of GCWL to the shareholders of GCIL against every 1,000 shares of GCIL and transfer of designated assets of Ghani Products (Private) Limited (GPL) with and into GCIL and other related matters,” read the notice.
According to documents provided to the PSX, the main purpose of the formation of the GCWL is to transfer the calcium carbide project from GCIL to GCWL.
GCWL will run and operate the calcium carbide and related products project.
This project is being set up at Hattar Special Economic Zone. It is pertinent to mention that calcium carbide, also known as calcium acetylide, is a chemical compound used in the production of polyvinyl chloride (PVC).
The principal line of business of GCWL is to manufacture, produce, refine, process, formulate, acquire, convert, sell, distribute, buy, sell, import, export or otherwise deal with various chemical and allied products.
Meanwhile, GCIL is principally engaged in the manufacturing, selling and trading of medical and industrial gases and chemicals. The company has installed more than 140 storage tanks at its customer’s premises ranging from 5,000 litres to 25,000 litres.
The company has set up an Air Separation Unit (ASU) plant at Port Qasim, Karachi, for the exclusive supply of liquid oxygen and liquid nitrogen, and has also commenced the construction work for the setup of its 5th ASU plant for 275 MTPD capacity for medical & industrial purposes.
