IHC Approves Shifa Medical Center Merger with SIHL

The Islamabad High Court (IHC) has approved the Scheme of Arrangement for the merger of Shifa Medical Center Islamabad (Private) Limited (SMCI) into Shifa International Hospitals Limited (SIHL), paving the way for the formal integration of the subsidiary into the listed healthcare company.

In a notice submitted to the Pakistan Stock Exchange (PSX), SIHL confirmed that the merger scheme received judicial approval in Companies Original No. 02 of 2026.

The company disclosed the development in compliance with Sections 96 and 131 of the Securities Act, 2015, along with Clause 5.6.1(a) of the PSX Rule Book.

The court’s approval follows SIHL’s earlier decision to proceed with the amalgamation after its Board of Directors, during a meeting held on October 25, approved the proposed merger subject to the fulfilment of all contractual, corporate, and regulatory requirements.

According to the company, the merger is intended to simplify the group’s corporate structure by eliminating separate administrative layers and inter-company arrangements. The integration is also expected to reduce operating costs, streamline regulatory compliance, and centralise the management of assets and liabilities.

SIHL believes the combined structure will improve asset utilisation, strengthen financial reporting, enhance strategic decision-making, expand its asset base, and enable the hospital group to benefit from greater operational efficiencies and economies of scale.

As part of the restructuring process, SIHL secured shareholder approval at an Extraordinary General Meeting (EGM) for a transaction involving 105.8 million shares of SMCI to acquire complete ownership of the subsidiary.

Prior to the acquisition, SIHL held a 56% stake in SMCI, while Interloop Holdings owned 40%, with the remaining 3% held by minority shareholders.

The company decided to acquire the remaining shareholding after improved performance in its core business renewed its expansion strategy, which had previously been delayed due to the COVID-19 pandemic, macroeconomic challenges, and significant currency depreciation.

SIHL expects full ownership to improve operational and administrative efficiency, simplify the group’s organisational structure, and provide tax-related benefits during the initial years when SMCI is projected to incur losses.

The acquisition is expected to require an additional investment of approximately Rs1.7 billion, on top of the Rs1.3 billion already invested in the project.

SMCI’s hospital facility consists of five floors and two basement levels and has obtained all necessary regulatory approvals. Located approximately four kilometres from SIHL’s main hospital in Islamabad, the facility is expected to enhance patient services and improve operational coordination between both locations.

The company has stated that the acquisition and future operations will be financed entirely through internal cash flows, supported by its financial position and improving profitability.

Following the court-approved amalgamation, SMCI’s assets, operations, and liabilities will formally become part of SIHL, strengthening the hospital group's platform for future expansion and growth.