YBG Group invests additional 2 billion in Kia Lucky Motors Ltd

Lucky Cement in the declarations to the Earnings Statements has passed a resolution to increase the equity investment in M/s. Kia Lucky Motors Pakistan Ltd. The company informed the exchange that it has approved an additional investment of up to Rs. 2. Billion, which is an enhancement from the amount of Rs. 12 billion to a total of 14 billion in the said project.

YBG Group, the parent company of Lucky Cements has acquired the license to undertake manufacturing, assembling, marketing, distribution, sales, after-sales service, import and export of all types of Kia motor vehicles, parts, and in accessories in Pakistan under the license of Kia Motors Corporation.

The Earnings report revealed further details on Yunus Wind Power Ltd. related investments. The Board of Directors have authorized to make investments amounting to approximately Rs. 720 million divided into 72,000,000 ordinary shares pf PKR 10/- share. The amount aforementioned amount includes cost contingencies for interest and insurance in case of delay during construction and considering the expected fluctuations between PKR and USD parity and for the maintenance of minimum shareholding ratio of 20% of the equity of in an associated company, M/s Yunus Wind Power Ltd. for a Wind Power Project of 50 MW.

Report on New and Ongoing Projects

• Brownfield Expansion (Installation of additional Line of 1.25 million tons per annum) at Karachi Plant

Company informed that the construction work at project site is running satisfactorily to achieve commercial operations during the month of December 2017

• Fully integrated green field Cement Plant in Punjab Province of Pakistan – 2.3 million tons per annum

The company currently is in process of seeking necessary approvals from the Government of Punjab for commencement of this project

Investments

Investment in 1 × 660 MW, supercritical, coal based power project

According to the release, the company has already executed EPS contract and also finalized the draft of the Power Purchase Agreement, Implementation Agreement, and Coal Supply Agreement. In view of these changes, the revised target for financial close and commercial operation is June, 2018 and June, 2021 respectively.