Arif Habib Corporation Limited intends to make an additional investment worth $11 million in Power Cement Limited, an associated undertaking of the firm.
According to a notification on the PSX, Power Cement Limited is exploring the possibility of installing components/machinery which shall make its plant energy efficient and is currently under negotiation with potential suppliers to finalize the agreement on a deferred payment basis.
This guarantee amount by Arif Habib Limited, will enable PCL to negotiate a better deal with the potential supplier as AHCL shall guarantee the deferred payment to support the functionality, operations and growth of the associated undertaking, i.e. Power Cement Limited and will thereby earn commission on its non-funded exposure.
The company has announced that its Board of Directors have conducted the necessary due diligence for the proposed guarantee.
The decision would be made via a Special Resolution at an Extraordinary General Meeting of Arif Habib Corporation Limited, which is to be held on Wednesday, September 26, 2018.
The special resolution is intended to remain valid for the period of 2 years from the date of approval by members and could be renewable for a further period if approved by the shareholders subsequently.
