September 14, 2021 (MLN): Beco Steel Limited (formerly Ravi Textile Mills Limited) under a new management team has started steel-related operations on a toll manufacturing basis.
An agreement was signed in May 2021 between Beco Steel Limited and Chaudhary Steel Mills Limited to transfer its running plants and machinery as well as Land and Buildings into Beco Steel Limited. All special resolutions were unanimously approved by the shareholders in their EOGM held on May 11, 2021.
As per the Beco’s notice to PSX, the Company has already submitted an application to SECP for issuance of 101,882,957 ordinary shares having a face value of Rs10/- each at a premium of Rs20/- each, directly and other than by way of right, in consideration for the acquisition of buildings, and plant and machinery. The Company has fulfilled all the legal requirements in connection with the special business and SECP's approval is pending in this regard.
As the approval from SECP as stated above is still pending, the company has started steel-related operations on a toll manufacturing basis, notice to PSX said.
To recall, in May’21, the shareholders of the company had approved a special resolution regarding the change of the Company’s name from ‘Ravi Textile Mills’ to ‘Beco Steel Limited’ and the principal line of business from the Textile sector to Steel Allied Products.
In June’21 the company had been granted a Certificate of Incorporation from SECP pursuant to change of company’s name to Beco Steel Limited. SECP also approved the Principal Line of Business and issued an amended Memorandum of Association of the Company.
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