March 12, 2019 (MLN): AGP Limited on Tuesday announced that it has finalized the arrangement to purchase a built up Nutraceutical product manufacturing facility, through the budgeted capital expenditure of PKR 152,400,000 on this account, out of internally generated cash flows.
Prior to this, the company had evaluated options to build up a Nutraceutical plant vs purchasing a built up facility. On the basis of detailed evaluation, it concluded that the purchase of an existing Nutraceutical facility is likely to be better as it will not only lead to an early entry in the market resulting in saving valuable time of 15-18 months, but also mitigate foreign exchange exposure risk and lead to a possible savings in capital expenditure.
Moreover, this decision has been made in line with the Company’s objectives to aggressively expand its product offerings in the growing segment of the Nutraceutical market.
The completion of the transaction contemplated in the said agreement will remain subject to satisfaction of conditions precedent and regulatory approvals specified therein.
