Servis Industries Ltd to Demerge Tyre & Tube, Retail Segments

Service Industries Limited (PSX: SRVI) has decided to demerge and transfer its Tyres & Tubes segment along with its manufacturing facilities and all relevant assets, operations, and liabilities, etc., to a wholly owned subsidiary which will be incorporated through the Court-sanctioned Scheme, the company informed the Pakistan Stock Exchange on Thursday. “This will be subject to finalization of relevant documentation and approval of the Scheme by the Board of Directors of the Company and the Court. Further progress in this regard will be intimated accordingly,” the filing stated. The company has also decided to demerge and transfer its Retail segment to a wholly owned subsidiary which will be formed via a court-sanctioned scheme. The filing said SRVI will continue to own and operate the remaining businesses comprising footwear units and investments after the de-merger of its Tyres & Tubes and Retail segments. Service Industries Limited has further resolved to increase long-term equity investment in Service Long March Tyres (Private) Limited (SLM) by up to Rs. 1.5 billion, as and when required by the target firm, by subscribing up to 150 million fully paid-up ordinary right shares of Rs. 10 each, subject to the approval of the members of the company.