Chinoy Engineering seeks Rs48.45m investment from Pakistan Cables

July 18, 2024 (MLN): Chinoy Engineering & Construction (Pvt) Limited (CECL), an associated company of Pakistan Cables Limited (PSX: PCAL) has invited equity investment from PCAL 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.

In addition, 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 PCAL 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 Industries Limited and International Steels Limited.

CECL was established to explore the 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 company understand that this investment will maximize shareholders' value of PCAL.

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

he EOGM in this regard is scheduled to be held on August 13, 2024 at 10:00am.

The share transfer books of PCAL for EOGM will remain closed from August 07, 2024 to August 13, 2024 (both days inclusive).

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