Karachi: In a significant move, Thal Limited has announced a strategic investment in the Sindh Engro Coal Mining Company Limited (SECMC), as per the resolutions passed during the 58th Annual General Meeting held on October 24, 2024. The investment, slated at approximately PKR 2.70 billion, aims to secure a total of 76,496,166 shares from Habib Bank Limited, which will increase Thal Limited's shareholding in SECMC to an estimated 16.65%.

The initial phase of the investment involves acquiring around 30,598,467 shares, amounting to approximately PKR 1.08 billion. This will enhance Thal's stake in SECMC to roughly 13.80%. According to information available from the Pakistan Stock Exchange (PSX), this acquisition marks Thal as a joint largest private sector shareholder in the coal mining venture.

Further to the company's resolutions, Thal Limited is also set to engage in additional sponsor support activities under the Sponsor Support Agreement. These include equity investments and the provision of standby letters of credit totaling up to USD 14 million, aimed at covering various operational aspects such as cost overruns and funding shortfalls.

This strategic move is approved under the provisions of Section 199 of the Companies Act, 2017 and is contingent upon the fulfillment of statutory and legal requirements. The decision underscores Thal Limited's commitment to reinforcing its position in the energy sector, particularly in coal mining operations that are pivotal for the country's energy requirements.

The approval for this extensive financial engagement will remain valid until the Senior Discharge Date, as defined in the Intercreditor Agreement related to SECMC, emphasizing the long-term nature of this investment.