Meta plans to maximize shareholder value after merging with Big Bird Foods Limited

July 20, 2023 (MLN): MetaTech Trading Limited (PSX: META) has resolved that the sponsors of Big Bird Foods Limited be required to furnish an undertaking to the effect that the proceeds from any and all future fund-raisings to go towards the transferor company, company’s filing on PSX showed.

This can be either through the disposal of shares in order to create the required free-float of the shares of Big Bird Foods Limited or any subsequent right shares issuance, upon the listing of the Transferor Company on PSX.

This is envisaged in the Scheme, and shall principally be used to maximize shareholder value, drive business expansion, and address the working capital shortfall, besides optimizing the company's revenues, earnings, and profits, thus enhancing the company's ability to repay outstanding liabilities of the banks.

To recall, this is in reference to MTEA’s merger with/into Big Bird Foods Limited, with Big Bird Foods Limited being the transferor company.

Furthermore, the company resolved that simultaneous to the listing of Big Bird Foods Limited, the shares of the sponsors of the transferor company, to the extent of 50% of the sponsor's shares of the transferor company, shall be placed in a blocked account with CDC

Moreover, META resolved that all financial institutions having their credit exposure to Big Bird Foods Limited may be required to also give their unequivocal no objection to the above arrangements proposed via the afore-mentioned resolutions while deeming the listing of the company as being beneficial for all stakeholders of the company.

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