First Treet Manufacturing Modaraba merges into Treet Packaging Limited

PAKISTAN – First Treet Manufacturing Modaraba has received regulatory clearance to merge into Treet Packaging Limited, converting the listed Modaraba into a conventional public limited company without altering its underlying packaging operations.

FTMM informed the Pakistan Stock Exchange on September 8 that the Registrar Modaraba at the Securities and Exchange Commission of Pakistan had issued a no-objection certificate for the proposed merger into Treet Packaging Limited. 

The clearance remains subject to conditions outlined in the regulator’s letter and represents only one stage in the approval process. 

Under the proposed scheme, FTMM’s two remaining operating businesses, corrugated packaging and soap manufacturing, will transfer to Treet Packaging together with all associated assets and liabilities.

Transaction Converts Legal Structure Rather Than Ownership

Unlike typical corporate mergers that combine two previously separate businesses, this transaction leaves factories, brands, customers and the controlling shareholder largely unchanged. What shifts is the legal wrapper around them. 

FTMM’s half-year accounts designate December 31, 2025 as the effective date, though legal completion depends on outstanding approvals. 

Treet Packaging was newly incorporated specifically for this purpose, meaning no independent outside company is being acquired.

Intra-Group Ownership Leaves Minimal Outside Stake

FTMM already operates as an almost entirely intra-group entity. 

As of June 2025, Treet Corporation directly owned 97.11% of its certificate capital, while Treet Holdings, the Modaraba’s management company, held another 2.22%. 

That structure left outside investors with less than 1% of certificates. 

The merger therefore changes form more than control, with no cash purchase price or enterprise valuation disclosed thus far.

Corrugated Packaging Remains Core Operating Asset

The corrugated packaging business represents the principal industrial asset moving into the new corporate structure. 

Corrugated cartons serve Pakistan’s food, beverage, pharmaceutical, textile and consumer goods sectors, where demand tracks broader manufacturing activity. 

By housing these operations within a conventional public limited company rather than a Modaraba, Treet gains a more familiar corporate vehicle for future expansion, financing and potential restructuring. 

Modarabas operate under distinct Shariah-compliant regulations governing profit-sharing and investment mandates, which can constrain certain corporate actions available to conventional companies. 

The conversion may simplify compliance obligations and broaden the range of financial instruments the packaging business can access. 

Treet Corporation maintains its position as controlling shareholder throughout the transition, ensuring operational continuity across the corrugated packaging and soap manufacturing divisions.

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