Treet Corporation Limited has announced significant developments regarding its subsidiary Treet Battery Limited (TBL) aimed at financial optimisation and shareholder value enhancement.
The corporation revealed the successful divestment of 11.33% of its stake in TBL, amounting to nearly 100 million shares, reducing its ownership in TBL to 85.76%. This move aligns with Treet’s strategy to generate liquidity and strengthen its financial position.
Additionally, Treet’s Board has approved a proposal by TBL to convert PKR 2 billion of inter-company loans and accumulated interest into equity. This conversion will result in the issuance of 200.3 million new TBL shares at PKR 10 per share, pending the Securities and Exchange Commission of Pakistan’s (SECP) approval. The conversion aims to fortify TBL’s capital base and enhance Treet’s equity returns.
In a further strategic move, Treet’s Board has greenlit the second phase of its divestment plan, proposing to sell up to 231.6 million additional TBL shares. The sale may occur through open market transactions or negotiated deals, depending on market conditions. This phase is designed to reduce borrowing levels, lower costs, and unlock value for Treet’s shareholders.
To address these measures, Treet has scheduled an Extraordinary General Meeting (EOGM) on January 10, 2025, at Ali Auditorium, Lahore, to seek shareholder approvals and comply with regulatory requirements.
Treet Battery Board Meeting and Closed Period Announcement
Separately, Treet Battery Limited announced a Board of Directors meeting on December 19, 2024, to discuss non-financial matters. In compliance with PSX regulations, a “Closed Period” has been declared from December 13 to December 19, during which insiders are prohibited from trading the company’s shares.
These developments underscore Treet Corporation’s strategic focus on financial restructuring and its commitment to creating long-term value for stakeholders.
