Karachi: OBS Group has announced plans to merge its three entities into AGP Ltd, aiming to streamline operations and enhance shareholder value through improved synergies in supply chain, marketing, and financial strategies.

According to JS Global, the merger will involve OBS Pharma, which is 80% owned by the Group, and AGP Ltd's subsidiaries, OBS Pakistan and OBS AGP. The strategic consolidation is projected to boost AGP Ltd’s revenue and profitability significantly by 2026. Estimates suggest a 10% increase in the target price for AGP Ltd shares, from Rs250 to Rs275, with revenue and profit after tax expected to rise by 30% and 28%, respectively, for 2026, and by 52% and 55% for the following year.

The press release detailed a projected increase in earnings per share by 11% and 12% for 2026 and 2027, respectively. The merger, anticipated to take effect by January 2026 pending regulatory and shareholder approvals, is expected to position AGP Ltd at a 25% discount to its historical price-to-earnings ratio. An Extraordinary General Meeting (EOGM) has been scheduled for June 29, 2026, to secure shareholder approval for the merger and other proposed changes, including a name change to OBS AGP Ltd.