September 17, 2018 (MLN): Dawood Hercules Corporation Limited (DAWH) has decided to terminate its decision to invest PKR 17.453 billion in Edotco Pakistan.
DAWH made an announcement to the PSX earlier today, notifying that the company is no longer pursuing the transaction to invest PKR 17.453 billion in Edotco Pakistan due to non-fulfillment of certain prerequisite conditions as per their Agreement with Edotco Pakistan
According to the official announcement, the Share Subscription Agreement between Dawood Hercules, Edotco (Labuan) Investments, and Edotco Pakistan prescribed various conditions that needed to be fulfilled before consummating the transaction.
“Of these conditions, certain material conditions were not met prior to the longstop date prescribed in the Agreement,” according to a notification issued by Dawood Hercules to Pakistan Stock Exchange.
DAWH has therefore decided to exercise their right to terminate the Agreement, and has also notified Edotco Labuan and Edotco Pakistan.
Last year on August 30th 2017, DAWH made an announcement to enter into a Shareholder Agreement and the Share Subscription Agreement with Edotco Investments (Labuan), a wholly owned subsidiary of Edotco group, a 62.4% subsidiary of Axiata Group Berhad for the equity share in Edotco Pakistan Private Limited
DAWH had further declared that upon completion of the Proposed Subscription, Edotco Labuan and DAWH will respectively hold 55% and 45% of the issued and paid-up share capital of Edotco Pakistan
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