Supernet Technologies issues 107M new shares after subsidiary merger

Supernet Technologies Limited (STL) has completed the merger of its listed subsidiary Supernet Limited into itself, issuing over 107 million new shares to eligible shareholders of both companies as part of a court-approved restructuring plan.

The Sindh High Court sanctioned the merger in February, paving the way for STL's board to approve the share allotment. The Pakistan Stock Exchange (PSX) formally delisted Supernet Ltd on April 1 with STL continuing to trade on the bourse's Main Board.

Under the deal, STL issued shares to two groups of shareholders. Existing shareholders received 5.5 million new shares — 11 additional shares for every one they already held — based on a record date of March 25. Former Supernet Ltd shareholders, meanwhile, received approximately 101.6 million STL shares at a conversion rate of roughly 1.68 STL shares for every share they held in the absorbed company.

The shares have been credited electronically to eligible shareholders through the Central Depository Company of Pakistan's (CDC) book-entry system, while physical share certificates are being mailed where applicable.

Supernet Ltd has been dissolved without being wound up, meaning the company ceased to exist as a separate legal entity but its operations and assets have been folded into STL rather than liquidated.

The merger is intended to simplify the group's corporate structure by consolidating operations under a single PSX-listed entity.