Sakrand Sugar Mills approves revival, restructuring plan with investor participation

June 23, 2026 (MLN): Sakrand Sugar Mills Limited (PSX: SKRS) has approved, in principle, a comprehensive revival and restructuring plan aimed at improving operations, liquidity position, debt management, and long-term shareholder value, according to a disclosure submitted to the Pakistan Stock Exchange (PSX) today.

The decision was taken in the company’s Board of Directors meeting held on June 23, 2026.

Under the proposed plan, a consortium of investors has expressed willingness to acquire a 25% equity stake in the company through a share purchase agreement from existing sponsors. The transaction will remain subject to regulatory approvals, including clearance from the stock exchange.

As part of the restructuring framework, the incoming investors have indicated plans to settle the company’s outstanding liabilities with Bank Makramah Limited and arrange working capital financing for the 2026–27 sugar crushing season. The move is expected to strengthen sugarcane procurement, operational capacity, and liquidity.

The investors have also committed to providing a PKR 100 million interest-free, unsecured sponsor loan for maintenance and repair of plant and machinery, repayable at the discretion of management.

In addition, they intend to participate in future rights issues, subscribe to any unsubscribed portion, and arrange underwriting support if required, ensuring continued capital support for the company.

To improve raw material availability, the investors will also assist in procuring an additional 2 million maunds of sugarcane through industry networks and local development initiatives.

The board also reviewed preliminary financial and operational projections linked to the revival plan, which outline a multi-year recovery trajectory showing gradual improvement in revenue, profitability, and equity position over the forecast period.

According to the projections, the company expects a turnaround in financial performance over the coming years, supported by improved capacity utilization, debt restructuring, and enhanced working capital access.

The revival plan signals a broader attempt to stabilize operations in Pakistan’s sugar sector, where firms often face cyclical pressures from input costs, cane availability, and financing constraints.

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