Lahore: In a significant development impacting the chemical industry sector, Ghani Chemical Industries Limited (GCIL) has announced an important decision by its Board of Directors. During a meeting held on January 21st, 2025, the Board approved key changes to the Scheme of Compromises, Arrangement, and Reconstruction involving the company and its subsidiary, Ghani ChemWorld Limited (GCWL).

The decision comes in response to a proposal from the Pakistan Stock Exchange (PSX), which was submitted in the Securities and Exchange Commission of Pakistan's (SECP) comments to the Lahore High Court. The PSX's recommendation urged GCIL to reconsider the security structure in alignment with existing frameworks. Consequently, the Board has invoked its powers under Article 6, Section (i), Subsection (XI) of the Scheme, opting to issue ordinary securities of GCWL to its shareholders. This move replaces the previously planned issuance of partially redeemable shares under the original scheme.

Additionally, the Board has decided to introduce a new Article, Article 7, as an Addendum to the Scheme. This addendum includes modified tables elucidating the issuance of ordinary shares and its implications on GCWL's capital, which is currently a wholly-owned entity of GCIL.

According to information available from the Pakistan Stock Exchange (PSX), the revised SWAP Calculation certificate, which has been carefully reviewed and approved by the Board, outlines a change in the SWAP Ratio (Share Entitlement Ratio) for the issuance of GCWL shares. This adjustment is expected to have a noteworthy impact on the company's shareholders and the market at large.

This strategic move by Ghani Chemical Industries Limited reflects its commitment to aligning with regulatory frameworks and enhancing shareholder value through the issuance of ordinary securities. The chemical industry sector will be closely monitoring the implications of this decision as it unfolds in the coming months.