Karachi: International Industries Limited (IIL) has disclosed plans for significant financial engagements with its associate, Chinoy Engineering and Construction Pvt. Limited (CECL), as outlined during the company's Board meeting on July 18, 2024.

According to information available from the Pakistan Stock Exchange (PSX), IIL has been invited by CECL to make an equity investment amounting to PKR 48.45 million for 4,845,000 ordinary shares, priced at PKR 10 each. This investment will represent 17% of CECL’s post-issuance paid-up capital. Additionally, CECL has proposed various financing arrangements including a potential short-term loan of up to PKR 300 million at a markup of KIBOR + 3%, a corporate guarantee to secure financing of up to PKR 1.5 billion in favor of Habib Bank Limited, and a performance guarantee involving Reko Diq Mining Company Ltd. These guarantees will also involve joint and several liabilities with other associated companies such as International Steels Limited and Pakistan Cables Limited.

CECL, which specializes in construction projects, has recently secured a contract to design and construct a Permanent Accommodation Camp at the Reko Diq Copper Gold Mines in Baluchistan. This venture is part of CECL’s strategic expansion into significant construction projects within the region.

The Board of Directors of IIL has recommended proceeding with the investment, viewing it as a strategic opportunity to enhance shareholder value. An Extraordinary General Meeting (EOGM) is scheduled for August 13, 2024, in Karachi to seek shareholder approval for these proposals through special resolutions, as mandated by Section 199 of the Companies Act, 2017, and related regulations.

The Share Transfer Books of the company will be closed from August 6, 2024, to August 13, 2024, encompassing the date of the EOGM. Details regarding the meeting will be announced shortly to ensure compliance with corporate governance standards and to keep stakeholders informed.