Lahore: Treet Battery Limited has received approval from the Securities and Exchange Commission of Pakistan (SECP) for a significant financial maneuver involving the conversion of a substantial loan into equity. This development follows an extra-ordinary general meeting held on January 10, 2025, where shareholders of Treet Battery Limited approved the conversion of a loan, along with accrued interest, extended by Treet Corporation Limited into ordinary shares of the company.

The total loan amounting to PKR 2.00 billion, which comprises a principal loan of PKR 1.28 billion and accrued interest of PKR 726.78 million, is set to be converted into 200,316,630 ordinary shares at a par value of PKR 10 per share. This issuance and allotment are being conducted through a further issue of shares to Treet Corporation Limited by way of an offer other than a rights issue.

According to information available from the Pakistan Stock Exchange (PSX), the conversion process involved an application under Section 83(1)(b) of the Companies Act, 2017, submitted to the SECP. This was aimed at the conversion of the loan into equity through the issuance of additional shares to Treet Corporation Limited. The SECP has now approved this application, marking a significant milestone in the company's financial restructuring strategy.

The approval from the SECP allows Treet Battery Limited to formalize the conversion, effectively altering the company's equity structure and potentially impacting its market category. A certificate from the external auditors of the company is anticipated to follow, providing further assurance regarding the share issuance process.

This development is expected to be communicated to the TRE certificate holders of the exchange in due course, ensuring transparency and adherence to regulatory requirements.