Crescent Fibres announces strategic asset sale

Crescent Fibres Limited (CFL) has received approval from its shareholders for a substantial asset sale, according to a notice issued to the Pakistan Stock Exchange (PSX) on Monday.

The Faisalabad-based company plans to sell a parcel of freehold land and buildings, marking a pivotal shift in its asset management strategy.

The assets up for sale include a freehold land parcel of 415 Kanals and 11 Marlas, along with buildings that span 278,651 square feet, situated at Chak No.202 RB, Nishatabad, Faisalabad.

This strategic disposal is subject to receiving the green light from the company's lenders and financial institutions, indicating a collaborative approach towards financial health and sustainability.

Proceeds from this asset sale are earmarked for a dual-purpose strategy focusing on reducing the company's financial liabilities and spearheading growth initiatives.

A significant portion of the funds will be allocated to settling dues with lenders and addressing certain liabilities, thereby aiming to lower finance costs.

In addition, Crescent Fibres intends to invest in capital expenditures, including the upgrade of machinery and the transition towards more cost-effective and efficient energy sources, to reduce fuel costs.

The remainder of the sale proceeds is planned for investment in new business ventures and capital market opportunities, signaling Crescent Fibres' commitment to diversification and long-term growth.