Lucky TG approves share buy-back, Lucky Core retains 51% stake

May 30, 2024 (MLN): The Board of Directors of Lucky TG, a joint venture between Lucky Core and Tariq Glass Industries Limited, has granted approval for the company to buy back its shares, as notified in the companies' filings on the PSX today.

The buy-back will be conducted in proportion to Lucky Core's current shareholding in Lucky TG, which stands at 51%. Following the buy-back, Lucky Core will continue to retain its 51% shareholding in Lucky TG.

Lucky TG will continue to remain solvent and be able to meet its financial obligations subsequent to the buy-back of shares.

This is in accordance with section 88 of the Companies Act 2017 read with relevant provisions of the Companies Regulations 2024, subject inter alia, to obtaining requisite approvals.

Lucky TG was incorporated to set up a float glass manufacturing facility with a production capacity of up to 1,000 metric tons per day.

The facility was intended to be set up in two phases having a production capacity of 500 metric tons per day each with the expectation that the first phase of the facility would become commercially operational during FY 2024-25.

However, uncertain economic conditions have caused a delay and necessitated a reassessment of the project timelines. During such a period that the project is delayed, the funds in Lucky TG remain unutilized.

The joint venture partners remain committed to completing the project as soon as the economic environment becomes more conducive.

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