Dandot Cement seeks shareholder nod for Rs150m related-party loan

June 02, 2026 (MLN): Dandot Cement Company Limited (PSX: DNCC) is seeking shareholder approval to extend a short-term unsecured loan of up to PKR150 million to an associated company.

The cement producer said the financing would support related-party liquidity requirements amid ongoing financial constraints.

The company, in a notice to shareholders, said an extraordinary general meeting will be held on June 25 to seek approval for providing a loan facility to D.C. Footwear (Pvt.) Ltd., a related party under common ownership.

The proposed financing would carry a markup of three-month KIBOR plus 1%, payable quarterly, with repayment due by June 30, 2027.

Dandot Cement said the facility would be extended on an “as-needed basis” for working capital requirements, subject to compliance with regulatory provisions governing related-party transactions.

The board has already approved the proposal, while an independent review conducted by BDO Ebrahim & Co. Chartered Accountants deemed the transaction fair and reasonable from the perspective of minority shareholders, according to the company.

The company also disclosed that D.C. Footwear reported revenue of PKR2.17 billion for the year ended June 30, 2024, compared with PKR1.74bn a year earlier, while profit after tax rose to PKR57.8m from PKR31.5m.

Shareholders will vote on the proposal under the requirements of the Companies Act, 2017 and the Listed Companies (Code of Corporate Governance) Regulations.

Copyright Mettis Link News