Quice Merger proceedings have been temporarily halted after the Sindh High Court restrained Quice Food Industries from taking any further steps to complete its proposed merger with Indus Food Products.
The interim order was issued during the hearing of Judicial Companies Miscellaneous No. 43 of 2026, filed by shareholders representing 26.87% of Quice Food Industries. The petition challenges the legality of the proposed merger and seeks judicial review of the approval process.
The dispute follows an Extraordinary General Meeting (EGM) held on 23 June 2026, where Quice Food Industries stated that its shareholders had approved the merger with Indus Food Products.
However, the petitioners argued that the merger does not satisfy the requirements of Section 279(2) of the Companies Act, 2017, which requires approval from at least 75% of a company’s shareholders. They contended that because shareholders holding more than 26% of the company’s shares opposed the proposal, the statutory threshold could not have been achieved.
The shareholders also alleged that the EGM was conducted improperly. According to the petition, several shareholders were prevented from casting their votes and were deliberately excluded from the voting process, raising concerns about the transparency and fairness of the meeting.
The proposed merger has faced legal challenges in recent months. Earlier, another group of shareholders filed Judicial Companies Miscellaneous No. 29 of 2026, questioning both the share-swap ratio approved by Quice Food Industries’ board and the level of financial disclosure relating to Indus Food Products.
The Sindh High Court’s interim order means the merger process will remain on hold until further proceedings determine whether the transaction complies with the Companies Act and addresses the objections raised by shareholders.
