Kohat Cement to extend Rs600m short-term finance to Ultra Kraft

October 16, 2024 (MLN): The shareholders of Kohat Cement Company Limited (PSX: KOHC) have approved the renewal of an investment by way of short-term running finance of up to Rs600 million in Ultra Kraft (Private) Limited (UKPL).

UKPL, an associated company, requires this finance to meet its working capital needs for a term of one year starting from October 29, 2024, at a mark-up rate of 1.50% above the three-month KIBOR or at the average borrowing cost of the company, whichever is higher.

UKPL shall repay the principal amount within fifteen (15) days of the end of each quarter, along with the applicable mark-up, as per the terms and conditions disclosed to the members.

Non-payment of the mark-up within the stipulated time period shall incur a further mark-up/penalty at the rate of 5% per annum on the unpaid amount.

Additionally, the company has resolved to buy­back up to 12 million of its own issued ordinary shares, representing 6.13% of the total outstanding shares of the company having a face value of Rs10 each in cash.

This will be paid out of the distributable profits/reserves of the Company through the Pakistan Stock Exchange Limited (PSX) at the spot/current price acceptable to the Company prevailing during the purchase period.

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