The Board of Directors of Lucky TG (Private) Limited (LTG) has granted their approval to buy back/purchase its shares.
Lucky TG is a joint venture company of Lucky Core Industries Limited (LCI) and Tariq Glass Industries Limited (TGL).
Both companies apprised the Pakistan Stock Exchange (PSX) through separate notices on Wednesday about this development in accordance with Sections 96 and 131 of the Securities Act, 2015 and the relevant provisions of the Rule Book of the PSX.
Lucky TG was incorporated to set up a float glass manufacturing facility with a production capacity of up to 1,000 metric tons per day, LCI said in its notice.
The facility was intended to be set up in two phases having a production capacity of 500 metric tons per day each with an expectation that the first phase of the facility would become commercially operational during FY 2024-25, it added.
However, uncertain economic conditions have caused a delay and necessitated a reassessment of the project timelines. During such a period that the project is delayed, the funds in Lucky TG remain unutilized, read the notice.
“Accordingly, the Board of Directors of Lucky TG has granted Lucky TG approval to buy-back/purchase its shares in accordance with section 88 of the Companies Act 2017 read with relevant provisions of the Companies Regulations 2024, subject inter alia, to obtaining requisite approvals.”
The buy-back will be in proportion to the company’s current shareholding (i.e. 51%) in Lucky TG and the company will continue to retain 51% shareholding in Lucky TG following the buy-back, the notice further elaborated.
Lucky TG will continue to remain solvent and be able to meet its financial obligations subsequent to the buy-back of shares.
The joint venture partners remain committed to completing the project as soon as the economic environment becomes more conducive.
