SECP allows BECO to issue 99.96mn shares other than right offer

February 08, 2022 (MLN): Security and Exchange Commission of Pakistan (SECP) has allowed Beco Steel Limited to issue 99,962,510 ordinary shares having a par value of Rs10 per share with a premium of Rs20 per share amounting to Rs2,998,875,300 by way of other than right offer against consideration of non-cash assets to company’s major shareholders under companies Act,2017, the company’s filing on PSX showed today.

The non-cash assets include land, building, and plant & machinery.

The approval is based on the special resolution passed by the shareholders of the company in the   Extraordinary General Meeting (EOGM) held on May 11, 2021 and the information/documents submitted to the Commission thereafter.

As per the notice of SECP, the approval is, however, subject to the following conditions:

• The shares shall be issued only in the book-entry form within 60 days from the date of approval by the Commission;
• The company shall intimate the Commission and the securities exchange about the issuance of the shares within seven days of the issuance;
• The non-cash assets (land, building, plant & machinery) against which the shares are being issued shall be transferred in the name of Beco Steel Limited, within 90 days of approval by the Commission.

The company shall provide information about the production capacity of the installed plant and machinery, the amount of capital expenditure required to be incurred on said plant and machinery during the next three years if any. If capital expenditure is required, the source to finance such capital expenditure is also to be provided.

Meanwhile, the company shall inform the Commission regarding the amount of working capital requirements and funding source to meet such requirements

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