FTMM gets share swap ratio certificate required for battery's division demerger

February 3, 2022 (MLN): First Treet Manufacturing Modaraba (FTMM) has obtained auditor’s certificate on share swap ratio, in connection with the Scheme of Arrangement between FTMM and Treet Battery Limited (TBL), company’s filing on bourse showed today.

For the purpose of demerger, the share swap ratio has been determined as 0.99840:1 (0.99840 ordinary shares in TBL against every 1 certificate held in FTMM).

To recall, FTMM is in the process of filing the scheme of demerging of its battery project to a newly formed associated company namely Treet Battery Limited (TBL).

All the related assets and liabilities of this project shall be transferred to TBL subject to the approval of the Honorable Lahore High Court, Lahore on the Scheme of Arrangement between FTMM and TBL.

The swap ratio was determined by the external auditor based on the information about the net assets of the FTMM battery project from the audited financial statements of the FTMM (Transferor) as of December 31, 2018.

According to the auditor’s certificate on swap ratio, “certificate premium reserve in the sum of Rs1,952,870,000 pertaining to battery project shall be utilized under the scheme of demerger for the issuance of shares in the newly formed company namely Treet Battery Limited to the certificate holders of the FTMM in a swap ratio of 0.99840: 1.”

The certificate was issued on the specific request of the management company of FTMM for the purpose of submission to the Honourable Lahore High Court, the notice said.

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