TREET divests stake, approves Rs2bn equity conversion in TBL

December 12, 2024 (MLN): Treet Corporation Limited (PSX: TREET) has successfully divested 11.3343% of its stake in TBL, liquidating 99.977 million shares as of November 30, 2024, the company's filing on PSX revealed today. 

This strategic move has reduced the company's holding in TBL to 85.76% of its paid-up capital. 

In another key development, the Board of TREET approved TBL's proposal to convert a portion of its inter-company loan and accumulated interest into equity.

This entails the issuance of 200.316m new shares to Treet Corporation at Rs10 per share, equivalent to Rs2.003 billion.

This is subject to the Securities and Exchange Commission of Pakistan's (SECP) approval. 

This initiative is aimed at optimizing TBL's financial position and strengthening the Company's equity returns.

Now, therefore, to further reduce the Company's borrowing levels and enhance shareholder value through a reduction in borrowing costs, the Board has approved a second phase of divestment.

This phase will involve reducing the Company's shareholding in TBL by up to 231.63m ordinary shares of TBL. 

These measures underscore the Company's strategic commitment to enhancing its financial structure and delivering sustained value to its shareholders.

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