Younus Brothers was established in 1962 as a fabric trading business house, which has become one of the largest conglomerates in Pakistan. Fazal Textile Mills and Gadoon Textile Mills the two textile mills of Younus Brother Group (YBG) are planning for a merge with an aim to attract new investment.
The merger will help the group increase the paid up capital to get new loan. Also they will be able to avail the opportunity of exchange raw material and bigger advantage would be of exchanging technology, besides lower marketing cost.
The shareholder will also benefit from this merger, more so the shareholders of Gadoon Textile will have major benefit in comparison to Fazal Textile Mills’ shareholders, as Gadoon Textile Mills share price stands at Rs 189 while Fazal Textile Mills share price stands at Rs 435.
Both the companies have sent information to Karachi Stock Exchange in accordance with Section 15D of the Securities Exchange Commission of Pakistan (SECP) Ord 1969 and clause (XX) of listing regulations No 35. of the Code of Corporate Governance.
According to the notice, board of directors of Fazal and Gadoon textile mills has passed a resolution to explore the viability of a potential merger of both the companies. For this purpose, discussion between both parties has been started and evaluation of feasibility is being started. BoD has also authorised the companies to appoint advisors and consultant for evaluating the feasibility, including due diligence and valuation for consideration. announced to start due diligence for potential merger
YBG announced on Monday that they would start due diligence for potential merger.
Fazal Textile Mills Limited was set up in 1987 is one of the top spinning mill in Pakistan with 59,508 installed spindles producing 100% Grey Cotton Ring Spun Yarn and wide range of Blended and Heather Yarns while Gadoon Textile Mills Limited was established a year later in 1988 with 194,392 installed spindles producing high quality Compact yarn, Murata Jet Spinning yarn, Core Spun yarn and 100% Grey Cotton Ring Spun yarn.
Fazal Textile Mills and Gadoon Textile Mills are first of the only two mills in the world to produce Compact Core Spun yarn
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