AGHA receives boost with additional Rs1bn equity subscription offer

April 19, 2023 (MLN): In order to further strengthen and capitalize Agha Steel Industries (PSX: AGHA), the existing sponsors and certain strategic shareholders have offered to subscribe the equity with an amount of up to Rs1 billion other than by way of right offering, the management of the company informed through a notification sent to PSX. 

The acquisition will be in the form of preference shares potentially to be issued by the company.

The Preference Shares are proposed to have the following terms and conditions:

• Un-listed
• callable after 3 years on a cumulative basis;
• Non-voting: Non-convertible;
• Preferential Dividend calculated @ 6-month KIBOR (0.5% to 1%) per annum, in priority to ordinary shareholders; and
• Preference over ordinary shares in the event of liquidation/winding up of the company.

The proposed issue of Preference Shares shall be subject to the approval of the shareholders and the Securities and Exchange Commission of Pakistan (SECP).

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