Chashma Sugar Mills Approves Merger with Ultimate Whole Foods

The Board of Directors at Chashma Sugar Mills Limited (CHAS), a prominent sugar producer, has given the green light for the company’s consolidation with its fully owned subsidiary, Ultimate Whole Foods (Private) Limited.

The publicly listed firm communicated this development to the Pakistan Stock Exchange (PSX) on Thursday.

“We are pleased to announce that the Board of Directors has sanctioned the amalgamation ‘scheme’ with Ultimate Whole Foods (Private) Limited, a wholly-owned subsidiary of the company.”

“The request for amalgamation, which includes the amalgamation plan, has been filed with the Securities and Exchange Commission of Pakistan (SECP) for their approval, marking the formal commencement of the merger process,” the notification stated.

Ethanol Manufacturing Facility Planned

Chashma Sugar Mills is also planning to establish an ethanol production unit.

The company has indicated that the proposed effective date for the merger is June 10, 2025.

“This calculated step is projected to simplify operations, boost administrative effectiveness, and reinforce the group’s financial strength and operational capabilities over the long haul,” the company added.

At the time of reporting, Chashma Sugar’s stock was trading around Rs74, reflecting an increase of Rs4, or 5.71%.

CHAS’s primary business involves the manufacturing, production, processing, compounding, preparation, and sale of sugar, along with associated compounds, intermediates, and related goods.

The Premier Sugar Mills and Distillery Company Limited holds a controlling stake in the company.