Adamjee Insurance to invest up to Rs. 850 million in Hyundai Nishat Motor

In a notice addressed to the exchange, Adamjee Insurance Limited (AICL) today informed the stakeholders that it has received approval from Board Members ito invest Rs. 800 million in Hyundai Motor Company (Pvt) Limited (HNMPL).

According to the filing, investment would be made from time to time to acquire at par fully paid up 85,000,000 ordinary shares of PKR 10 each of Hyundai Nishat Motor Company Limited as per terms and conditions agreed upon by members.

The notice further mentioned that, “the company (AICL) is hereby authorized to provide sponsors support to Hyundai Nishat Motor (Pvt) Limited, an associate company by way of continuing Stand by Letter(s) of credit (SBLC) for an amount up to PKR 1 billion (Rupees 1 billion only) for a period of 7.5 years starting from the date of issue of guarantee/SBLC to be issued by the company’s banker(s) in favor of financial institutions/lenders of HNMPL”.

The company (AICL) in extension of the guarantee to Hyundai Nishat Motor mentioned in the case of call by lenders of HNMPL for repayment of money as a result of enforcement by SBLC, AICL will recover the full amount by HNMPL with mark up of 0.5 percent above the average borrowing cost of the company or KIBOR for the relevant period.