Balochistan Glass acquires 50% ordinary shares of MMM Holding

LAHORE: According to a Pakistan Stock Exchange (PSX) notification, the Balochistan Glass Ltd (BGL) has received a Notice of Punjab Announcement of Intention (PAI) from Tariq Glass Ltd (TGL), through AKD Securities Ltd (AKDS). AKDS is acting as the Manager to the Offer. As part of this notice, BGL will acquire up to 50% ordinary shares of MMM Holding (Pvt) Ltd, which is a holding company of BGL.

Balochistan Glass Limited was set up in 1980 as a public limited company under the repealed Companies Act, 1913 (now, Companies Act, 2017). The company manufactures and sells glass containers, glass table wares and plastic shells.

According to an article published by Business Recorder, BGL’s financial performance contracted from 2014 to 2018, and increased again in 2019 and 2020. BGL saw the largest decline in its revenue in 2017 and incurred an overall loss of Rs 491 million. The company experienced the highest growth in revenue in 2020, ever since 2014.

TGL was established in 1978, and two years later, it was converted into a public limited company. The company manufactures and sells glass containers, opal glass, tableware and foat glass under the brand names Omroc, Toyo Nasic, and NOVA glassware. The company is present in both the domestic market as well as the international market, selling to countries like Afghanistan and Sri Lanka.

TGL has mostly been experiencing an upward trajectory in its growth since its inception in 1978. According to an article published by Business Recorder, the only exception to this trend has been the outbreak of the Covid-19 pandemic. 

Previously, MMM owned 78.61% ordinary shares of BGL and was one of its listed companies. Furthermore, it has been disclosed that MMM acquired an additional 15,000,000 ordinary shares of BGL on April 17, 2023. Thereafter, its shareholding in BGL increased from 205, 644, 430 ordinary shares to 220, 644, 430 ordinary shares. This means that presently, MMM is holding around 84.3% shares of BGL. Now, TGL intends to acquire beyond the thresholds prescribed under section 111 of the Securities Act, 2015. The BGL Board of Directors has been notified of this intention.