Lahore: Ghani Global Holdings Limited (GGL) announced that its Board of Directors has approved the issuance of convertible debt securities through a right offer, aiming to raise capital to pay off existing debts, including those owed to Ghani Chemical Industries Limited. The decision was made during a board meeting held on March 18, 2025.

The board has decided to send a notice of resolution under Section 140 of the Companies Act, 2017, to Ghani Global Glass Limited, requesting the inclusion of this agenda in its upcoming Extraordinary General Meeting scheduled for April 08, 2025. The resolution seeks shareholder approval to issue convertible Sukuk, a form of Islamic financial certificate, with an issue size not exceeding Rs. 1.20 billion. The Sukuk can be issued in tranches or in full, as determined by the board.

According to information available from the Pakistan Stock Exchange (PSX), the issuance aims to convert Rs. 1.20 billion worth of Sukuk into 60 million ordinary shares, based on a conversion ratio of two Sukuk for one ordinary share. The board is empowered to amend the terms, including profit rates and issuance structure, without further shareholder approval, unless directed by the Securities and Exchange Commission of Pakistan.

The Sukuk, named "Ghani Global Glass Limited - Convertible Sukuk," will initially be offered to existing shareholders of the company, including those of the holding company, if the board decides. The Sukuk are perpetual, with conversion into ordinary shares contingent on specific triggering events. The conversion price is set at Rs. 20.00 per share.

The board has authorized the Chief Executive and Company Secretary to appoint necessary advisors and officers for the Sukuk issuance. They are also empowered to negotiate terms, execute documents, and secure necessary approvals from relevant authorities, including the SECP and CDC, to facilitate the process.

The board's resolutions are effective until the full amount and number of Sukuk are exhausted, and interim profits may be paid as determined by the board. The Sukuk will remain under the board's control for issuance and management, ensuring alignment with the Companies Act, 2017, and other applicable regulations.