Chakwal Spinning Mills Limited has signed the term sheet for an investment of Rs 7.784 billion with PNO Capital Limited for the launch of the data centre and cloud operations in Pakistan.
This decision followed a meeting of the company’s Board of Directors on July 12, 2024, and was subsequently approved by the shareholders during an Extraordinary General Meeting (EOGM) held on August 2, 2024.
Chakwal Spinning Mills communicated this information to the Pakistan Stock Exchange (PSX) through a notice on Monday in accordance with Section 96 and Section 131 of the Securities Act, 2015 and Clause No. 5.6.1(a) of the PSX Regulations.
“Out of the total investment, Rs 500 million will be in the form of equity, contingent upon an equity injection of Rs 400 million from the company’s sponsors,” read the notice.
The remaining Rs 7.284 billion will be raised through a Convertible Bond with a maturity of three years and an annual coupon rate of 10%, which will be adjusted cumulatively at the end of the tenor.
In addition to this investment, Chakwal Spinning Mills has appointed Optimus Capital Management (Private) Limited as its financial advisor to facilitate the investment and related financial activities.
This move marks a significant step for Chakwal Spinning Mills as it ventures into the technology sector, leveraging new opportunities in Data Centre and Cloud Operations, a growing field in Pakistan’s digital economy.
In January 2024, the Board of Directors (BoD) of Chakwal Spinning Mills Limited approved the Memorandum of Understanding (MOU) for a merger/acquisition with one of Pakistan’s leading technology companies. It said in its notice to the PSX that the chosen technology firm has a global presence in the USA, UAE, Philippines, and China.
Notably, Chakwal Spinning Mills operates in the textile spinning sector.
