Secure Logistic And Trax Online Merger To Transform Logistics Sector

In a significant development in the logistics sector, Secure Logistic Group Limited (SLGL) and Trax Online (Pvt.) Limited have announced their decision to merge operations. This strategic move, revealed through a stock filing on Thursday, is set to create a formidable entity in the logistics services market. The merger is expected to be finalized by December 31, 2024, and aims to leverage the strengths of both companies to enhance service delivery and operational efficiency.

The merger will involve the amalgamation of Trax Online into Secure Logistic Group or one of its wholly-owned subsidiaries. This process will be conducted under a Scheme of Arrangement, which is prepared in accordance with the provisions of Sections 279-282 of the Companies Act 2017. The merger is subject to approval from the shareholders of both companies and must be sanctioned by a competent High Court, along with necessary regulatory approvals.

Both SLGL and Trax Online are committed to executing definitive agreements and implementing the merger process by the end of 2024. The Boards of Directors of both companies have already documented key terms and conditions, which will serve as the foundation for the definitive agreements and the Scheme to be submitted for court sanction.

The merger is anticipated to transform the combined entity into a leading player in the 4 PL Logistics sector. By combining their complementary business lines, the companies expect to achieve significant savings through the reduction of overlapping costs. Additionally, the merger will harness synergies, including SLGL’s commercial assets and Trax’s advanced technology platform, which will ultimately maximize the financial performance of the new entity.

With this merger, the combined company is projected to serve over 300 established corporate clients, along with thousands of small and medium enterprises across various business lines and segments. SLGL has a robust 14-year operational history in long-haul and distribution logistics, asset tracking, and security services. On the other hand, Trax Online is recognized as a tech-enabled leader in supply chain logistics, offering services such as Last Mile delivery, Retail, Bulk, Banking, International logistics, Warehousing, and fulfillment. Their technology platforms provide comprehensive logistic solutions for B2B merchants, facilitating deliveries and payments efficiently. Trax has successfully booked and delivered more than 32 million packages, showcasing its extensive reach with over 12,000 active clients across more than 650 cities and towns in Pakistan.

This merger marks a pivotal moment in the logistics industry, promising to enhance service offerings and operational capabilities. As the logistics landscape continues to evolve, the collaboration between SLGL and Trax Online could set a new standard for efficiency and innovation in the sector. Stakeholders and clients alike will be watching closely as this merger unfolds, anticipating the positive impact it will have on the logistics services available in Pakistan.