June 23, 2022 (MLN): The shareholders of Reliance Weaving Mills Limited (PSX: REWM) have resolved the change in terms and conditions (T&Cs) of the long-term investments in Fatima Transmission Company Limited (FTCL), the company’s filing on PSX showed today.
The said investments include a conversion feature whereby the loans/advances provided/to be provided to the FTCL may be convertible into non-cumulative, redeemable, non-voting, participatory preference shares of the FTCL, the notice added.
It was further resolved that the above investment in preference shares of FTCL was categorized as equity investment up to the extent of Rs228.125 million in the conversion of loans/advances already provided/to be provided to FTCL.
“The investment by way of convertible loans/advance as approved above shall be adjusted against the rights offer from FTCL and/or by subscribing to any un-subscribed portion of rights offered to the company, in a manner as approved by the Board of Directors in the best interest of the company.”
Earlier, on June 01, 2022, the Board of Directors of Reliance Weaving Mills Limited had approved the conversion of outstanding loans and advances of Fatima Transmission Company Limited amounting to Rs73.39 million into unlisted, non-voting, non-cumulative, participatory, convertible and redeemable preference shares at par value of Rs10 each.