Chinoy Engineering seeks Rs48.45m investment from INIL, ISL

July 19, 2024 (MLN): Chinoy Engineering & Construction (Pvt) Limited (CECL), an associated company of International Industries Limited (PSX: INIL) has invited equity investment from INIL and International Steels Limited (PSX: ISL) of up to Rs48.45 million.

CECL has proposed issuing up to 4.845m ordinary shares valued at Rs10 each, and represents up to 17% of CECL's post-issuance paid-up capital, INIL and ISL said in stock filings on Friday.

Read: Chinoy Engineering seeks Rs48.45m investment from Pakistan Cables

In addition, CECL has also invited a short-term loan of up to Rs300m, if needed, at a markup of KIBOR + 3%.

CECL has also invited a corporate guarantee in favor of Habib Bank Limited for CECL to secure financing of up to Rs1.5 billion.

Furthermore, CECL has invited to issue a guarantee to ensure that CECL performs its contractual obligations with Reko Diq Mining Company Ltd (RDMC), with joint and several liability with associated companies International Steels Limited and Pakistan Cables Limited.

CECL was established to explore business opportunities in construction projects and has successfully entered into a contract with the RDMC to design and construct a Permanent Accommodation Camp at Reko Diq Copper Gold Mines, Baluchistan.

"The board of directors of the INIL understands that this investment will maximize shareholders' value of the company," the company said.

The board recommended accepting the invitation to invest in CECL and have called an extraordinary general meeting (EOGM) of the shareholders of INIL for the approval of the investment by way of special resolutions.

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