LAHORE: The board of Dawood Lawrencepur Limited has approved Rs70 million investment in the proposed right share issue of Reon Energy Limited.
It also gave go-ahead to an issuance of a corporate guarantee in favour of Allied Bank as a security against running finance/money market loan of Rs5 million to be obtained by Tenaga Generasi Limited.
Reon Energy is a wholly-owned subsidiary of Dawood Lawrencepur and Tenaga Generasi Limited is also its subsidiary.
In a notification sent to the stock exchange on Monday, Dawood Lawrence Limited said “The board of directors of Dawood Lawrencepur Limited in its meeting held on June 4, 2018, has approved investment of Rs. 70,000,000 (Rupees seventy million) in the proposed right issue of Reon Energy Limited (wholly owned subsidiary company) comprising of 7,000,000 shares of Rs. 10/- (Rupees ten each).”
“The board of directors of the Company has also approved, subject to the approval of the Members of the company in terms of Section 199 of the Companies Act, 2017 and all other applicable laws at the forthcoming Extraordinary General Meeting (EGM) to be held on July 6, 2018, issuance of a Corporate Guarantee in favour of Allied Bank Limited, as a security against Running Finance (RF) / Money Market Loan (MML) of Rs. 500,000,000/to be obtained by Tenaga Generasi Limited, subsidiary company of Dawood Lawrencepur Limited,” read the notification.
In December last year, the board of directors of Dawood Lawrencepur had approved investment of Rs280 million by subscription of 28,000,000 Right Shares of Reon Energy Limited at Par value of Rs10 each.
Dawood Lawrencepur Limited was formed in 2004 by the amalgamation of Lawrencepur Woolen and Textile Mills Limited, Dawood Cotton Mills Limited, Burewala Textile Mills Limited and Dilon Limited. Dawood Lawrencepur Limited is the first producer of worsted fabrics and garments in Pakistan. It is an integrated company of the Dawood Group.
Reon Energy Limited is one of the leading solar energy companies in Pakistan with technical and financial expertise to design, deploy and maintain operations.
It is part of the Dawood Hercules Corporation – which is the single largest contributor to the private energy sector of Pakistan – that controls almost 1800 MW of generation capacity, boasting large scale ventures such as Hub Power Company Limited (HUBCO), Sindh Engro Coal Mining Company, Tenaga Generasi Limited and Laraib Energy Limited.
Dawood Lawrencepur shares ended trading at Rs171.73, up Rs8.17 (+5.0 percent). KSE-100 index closed at 43,268.29 points, up 355.48 points (0.83 percent) from Friday’s close.