Crescent Star Insurance’s Subsidiary Merger Scheme Gets Sindh High Court Approval
Crescent Star Insurance Limited has announced that the Sindh High Court has approved a modified Scheme of Arrangement for the merger of its subsidiary, Crescent Star Foods (Pvt) Ltd, with PICIC Insurance Ltd.
According to the company’s notice dated April 17, 2026, the approval was granted through an order dated April 16, 2026. The development was disclosed to shareholders and the general public in accordance with the Securities Act, 2015 and applicable Pakistan Stock Exchange regulations.
Under the approved scheme, Crescent Star Foods (Pvt) Ltd, a subsidiary of Crescent Star Insurance, will be merged into PICIC Insurance Ltd, which will remain the surviving listed entity.
As consideration for the merger, PICIC Insurance will issue 7,907,794,516 ordinary shares to the shareholders of Crescent Star Foods, including Crescent Star Insurance, in accordance with the terms of the approved scheme.
The transaction will result in Crescent Star Insurance’s existing investment in Crescent Star Foods being replaced by a shareholding in PICIC Insurance once the scheme becomes effective. The company described the transaction as a significant strategic milestone that is expected to facilitate value realization from its subsidiary and strengthen its position within the capital markets framework.
The merger is not yet effective solely on the basis of the court approval. Crescent Star Insurance said implementation remains subject to the completion of regulatory and procedural requirements. These include filing a certified copy of the court order with the Registrar of Companies, completing the necessary corporate actions and approvals, and finalizing share issuance formalities and crediting of shares to the relevant Central Depository Company (CDC) accounts.
The company said further updates regarding implementation of the scheme will be communicated to the Pakistan Stock Exchange in due course.
The development marks an important step in the restructuring of Crescent Star Insurance’s investment in its subsidiary and could provide shareholders with a direct interest in the surviving listed insurance entity following completion of the required formalities.
