Details of SRVI reorganization plan

Service Industries Ltd (SRVI) has announced a comprehensive reorganization plan to streamline its operations and enhance efficiency. This move follows the successful demerger of its footwear export business in 2019, now listed as Service Global Footwear (SGF).

Key Highlights of the Reorganization Plan

The recently passed resolution outlines several key changes:

• Demerger of Tyre and Auto Parts Business: All assets and liabilities related to the tyre and auto parts business will be transferred to Service Tyres (Pvt) Ltd, a 100% owned subsidiary.
• Transfer of SLM Shares: 128.15 million shares of Service Long March (SLM) will be transferred to Service Tyres (Pvt) Ltd.
• Demerger of Retail Segment: All assets and liabilities of the retail segment will be transferred to Service Retail (Pvt) Ltd, a newly formed 100% owned subsidiary.
• Transfer of Speed Sports Shares: The entire 100% stake (160.71 million shares) of Speed (Pvt) Ltd will be transferred to Service Industries Capital (Pvt) Ltd, an investment holding company.

SRVI will continue to own and operate the footwear segment and hold investments in associated companies after the demerger of these segments.

Details of the Restructuring Plan

Division/Investment	Current Stake	Proposed Stake	Details
Divisions
Tyres & Tubes	In-House	Transferred	To be transferred to Service Tyres
Footwear	In-House	In-House	No Change
Auto Spare Parts	In-House	Transferred	To be transferred to Service Tyres
Retail – Footwear	In-House	Transferred	To be transferred to Service Retail
Investments
SGF	79%	79%	No Change
SLM	32%	22%	10% stake to be transferred to Service Tyres
SIL Gulf	100%	100%	No Change
Service Capital	100%	100%	Stake in Speed Sports to be transferred here
Speed Sports	22%	0%	To be transferred to Service Capital
Service Retail	100%	100%	SRVI Retail Division transferred here
Service Tyres	100%	100%	SRVI Tyre and spare parts Divisions transferred here

Conclusion

The reorganization plan is a strategic move by SRVI to improve efficiency and focus on core operations. By transferring specific assets and liabilities to dedicated subsidiaries, SRVI aims to enhance its overall performance and streamline its business structure.

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Disclaimer:

The information in this article is based on research by JS Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.