Service Global Footwear approves up to Rs1 billion equity investment in Service Athletic Global Footwear

Service Global Footwear Limited has approved a long-term equity investment of up to Rs1 billion in Service Athletic Global Footwear (Private) Limited, which is to be incorporated as its subsidiary.

According to a notice issued to the Pakistan Stock Exchange on Friday, the approval was granted through a special resolution in terms of Section 199 of the Companies Act, 2017 and other applicable provisions.

The company will subscribe to fully paid-up ordinary shares at par value in the proposed subsidiary. The investment may be made in phases from time to time.

The resolution states that the company’s shareholding percentage may temporarily increase during phased equity injections by other shareholders. However, upon completion of the capital contribution by all shareholders, Service Global Footwear Limited will maintain a 51% stake in the paid-up capital of the subsidiary.

The special resolution will remain valid for five years from the date of approval by the members.

The Chief Executive Officer or any director has been authorised to take necessary steps to execute the investment, including signing agreements and completing required legal formalities.

In addition, members also passed an ordinary resolution under Section 183(3) of the Companies Act, 2017, approving the lease of the company’s Unit-4 building, measuring 79,760 square feet, located at 10 km Muridke, Sheikhupura Road, Muridke, Punjab, to the new subsidiary once incorporated.