Karachi: International Industries Limited (IIL) has announced significant investment moves and operational decisions at its Extraordinary General Meeting (EGM) held on August 13, 2024. According to information available from the Pakistan Stock Exchange (PSX), the resolutions passed at the meeting underscore the company's strategic focus on expansion and compliance with regulatory requirements.

At the EGM, shareholders approved an investment for a 17% stake in Chinoy Engineering & Construction (Private) Limited (CECL), involving the subscription of 4.85 million ordinary shares valued at PKR 10 each, totaling approximately PKR 48.45 million. This move aligns with IIL’s objectives to enhance its market presence and operational capabilities.

Further strategic decisions include the authorization of short-term loans up to PKR 300 million to CECL at a markup rate of KIBOR +3%. Additionally, a corporate guarantee of PKR 1.5 billion has been sanctioned in favor of Habib Bank Limited to support CECL's financing needs. This is part of a broader arrangement wherein IIL will also ensure CECL meets its obligations under a contract with Reko Diq Mining Company Ltd, with joint and several liability shared with Pakistan Cables Limited and International Steels Limited.

The resolutions also empowered the CEO, CFO, and Company Secretary of IIL, jointly and severally, to undertake all necessary actions, including regulatory filings and submissions, to execute these plans effectively. Amendments or modifications to these resolutions may be made as directed by the Securities and Exchange Commission of Pakistan (SECP) or other regulatory bodies, ensuring compliance and adaptability to evolving regulatory landscapes.

These developments mark a significant step in IIL's strategy to bolster its investment portfolio and secure its position in competitive market sectors through prudent financial management and strategic growth initiatives.