Karachi: Bawany Air Products Limited announced an upcoming Extraordinary General Meeting (EOGM) to be held on September 26, 2024, aimed at expanding its business operations and consolidating its market position. The meeting will take place in Karachi, where shareholders are expected to vote on several critical resolutions, including substantial increases in both authorized and paid-up share capital and a strategic acquisition that could reshape the company's future.
According to information available from the Pakistan Stock Exchange (PSX), the primary agenda includes the approval of minutes from the previous EOGM, held on May 29, 2024. However, the focus will likely be on the proposed increase in authorized share capital from PKR 11 billion to PKR 12.1 billion. This change would adjust the company’s share structure from 1.1 billion shares to 1.21 billion shares valued at PKR 10 each.
In a significant expansion move, the company plans to issue 600 million shares, valued at PKR 6 billion, to facilitate the acquisition of Alman Seyyem Sugar Mills (Pvt.) Limited (ASSML). This strategic acquisition involves purchasing 51.114 million shares of ASSML at a total cost of PKR 12 billion. As part of the consideration, 600 million new shares will be issued to the sponsor shareholders of ASSML, with the remaining balance paid within two years per the Share Purchase Agreement terms.
Further resolutions include a change to the Object clause of the company’s Memorandum of Association, shifting from manufacturing to focusing primarily on investment in securities. This change reflects a strategic pivot in the company's business model towards financial investments.
The proposed corporate actions, including the issue of shares and changes in the Object clause, are subject to the approval of the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX). These approvals are part of the regulatory compliance process that also involves potential adjustments based on feedback from these regulatory bodies.
The outcome of the EOGM could significantly influence Bawany Air Products' operational and financial strategy, aligning it with broader investment objectives and ensuring compliance with regulatory standards. Shareholders and investors are watching closely as these decisions will determine the company's trajectory in the coming years.