Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

Trending :

LUCK powers up solar initiative, dives into resource ventures

LUCK powers up solar initiative
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

October 30, 2023 (MLN): Lucky Cement Limited (PSX: LUCK) received the green light from its Board of Directors (BoD) on Friday pertaining to diversifying its portfolio,  the company's filing on PSX revealed on Monday.

Solar power project at PEZU plant

The BoD allowed the company to undertake another solar power project of 6 MW at the LUCK's Pezu plant which is expected to be completed by the end of FY24.

Keeping up with the commitment towards sustainable environmental practices, the contribution of renewable energy in the power mix will significantly increase post-completion of the project.

The company's initiatives for investment in renewable energy projects will play a key role in cost savings as well as the reduction of the country's reliance on imported fuel.

Equity investment in LCV

The BoD also resolved to invest, in the form of equity, an amount of up to Rs3 billion in Lucky Core Ventures (Private) Limited (LCV) by subscribing to its shares, subject to compliance with the applicable laws, including obtaining the necessary corporate and regulatory approvals.

LCV is currently a wholly-owned subsidiary of Lucky Core Industries Limited (LCI) (a subsidiary of LUCK) and has agreed to undertake the acquisition of majority shareholding in Lotte Chemical Pakistan Limited from Lotte Chemical Corporation (South Korea), subject to fulfilment of certain conditions as mentioned in the said agreement.

After the above investment, the company will hold a minority share in the shareholding of LCV.

The investment is being undertaken together with other companies comprising the Yunus Brothers Group and the aggregate shareholding of such companies, excluding LCI is not intended to exceed 49% of the total share capital of LCV.

The precise shareholding pattern of LCV shall be determined at a later stage.

Investment in National Resource (Private) Limited

The BoD also recommended the company make an investment of up to Rs1bn in its associated company, National Resources (Private) Limited (NRL).

NRL is a joint venture between three business houses of the country, including the Yunus Brothers Group, and has been established to carry out activities in the field of exploration and mining of metals (mainly gold and copper).

NRL has been granted an Exploration License over an area of approximately 499.17 square kilometres in the Chagai district of Balochistan.

The investment is proposed and recommended to be carried out as follows, subject to obtaining the necessary corporate and regulatory approvals.

Part of the investment will be undertaken through the acquisition of up to 33.33% ordinary shares of NRL, from Y. B. Pakistan Limited, associated company / related party of the Company, for an aggregate purchase price of up to Rs253 million.

In determining the above-referred purchase consideration the company has used a valuation report prepared by a firm of Chartered Accountants, engaged by the company for this purpose in accordance with the relevant laws.

The valuation represents discounted future cashflows from this business, keeping in view that NRL holds an Exploration License in respect of such area.

The amount spent on initial due diligence which includes technical studies, mapping and imaging for identifying the potential area having metal reserves has also been accounted for in the purchase price.

LUCK would also invest further amounts in NRL from time to time before or after the Potential Acquisition, by way of providing loans/advances to NRL and/or subscribing to shares of NRL as determined by the authorized representatives of the company, in the aggregate amount of up to Rs747mn.

The potential investments will be utilized for conducting pre-feasibility studies including satellite and geographical mapping and drilling.

Copyright Mettis Link News

Posted on: 2023-10-30T09:47:59+05:00