Treet Battery Limited has announced significant decisions following a Board of Directors meeting held on Thursday. The measures, aimed at strengthening the company’s financial structure, include a debt-to-equity conversion, an increase in authorised capital, and the scheduling of an extraordinary general meeting (EOGM) to seek shareholder approval.
The company plans to convert inter-company borrowings from Treet Corporation Limited (TCL) into equity. The conversion includes a principal amount and accrued interest totaling PKR 2.003 billion, which will be converted into 200.316 million ordinary shares. This will be executed through the issuance of shares to TCL by way of an offer other than rights, subject to the approval of shareholders and the Securities and Exchange Commission of Pakistan (SECP).
The Board has approved an increase in Treet Battery Limited’s authorised capital from PKR 10.01 billion (divided into 1.001 billion ordinary shares of PKR 10 each) to PKR 11 billion (divided into 1.1 billion ordinary shares of PKR 10 each). This will require an amendment to the company’s memorandum of association and shareholder approval.
An EOGM is scheduled for January 10, 2025, at Ali Auditorium, Ferozepur Road, Lahore, at 10:30 AM, to seek shareholder consent on the proposed measures.
The proposed debt-to-equity conversion is expected to lower Treet Battery’s borrowing levels and reduce financing costs, enhancing the company’s financial stability. These measures are part of the company’s broader strategy to optimize its financial structure and deliver long-term value to its shareholders.
