Ghani Chemical shareholders approve ₨1.86 billion investment in associate company

KARACHI: Ghani group companies have announced separate corporate actions, with Ghani Chemical Industries Limited (GCIL) approving a further investment of up to ₨1.863 billion in GHG Emissions Mitigation Limited (GEM), while Ghani ChemWorld Limited (GCWL) has finalised the schedule for its rights issue of Partially Redeemable Shares (PRS).

The approval was granted during the company's Extraordinary General Meeting held on June 2, 2026, according to separate disclosures submitted to the Pakistan Stock Exchange (PSX) on Wednesday.

Under the resolution, GCIL will invest up to ₨1,862,980,000 in GEM by subscribing to 186.298 million shares with a face value of ₨10 each to be issued by the associated company.

Shareholders also authorised the Chief Executive Officer, Executive Director, and Company Secretary to execute the investment and complete all related corporate formalities as and when required.

In a separate resolution, shareholders approved the execution of a Sponsors Support Agreement (SSA) in favour of Habib Bank Limited and other financiers in connection with financing facilities being arranged for GEM.

According to the disclosure, the financing package includes a Letter of Credit facility of up to $38 million and a funded facility of up to ₨14.4 billion.

GEM will utilise the facilities to finance a gas mitigation and energy production project located near the Sachal Gas Processing Complex.

The agreement allows GCIL to provide sponsor support in proportion to its shareholding in GEM. Such support may include funding project cost overruns, meeting equity contribution requirements, supporting debt service reserve obligations and providing letters of comfort required by financiers.

The company stated that any financial support provided under the agreement would remain subject to the terms and conditions of the Sponsors Support Agreement and the financing arrangements.

GHG Emissions Mitigation Limited is an associated company of Ghani Chemical Industries and is developing the gas mitigation and energy production facility that will be financed through the approved investment and banking facilities.

Separately, Ghani ChemWorld Limited informed the PSX that it has placed the final Schedule-I (Offer Document) for its previously approved rights issue of 1,250,719 Partially Redeemable Shares (PRS) on the PSX portal.

The Board of Directors had initially approved the issuance on March 13, 2026, while shareholders endorsed the proposal at an Extraordinary General Meeting held on May 2, 2026.

GCWL has fixed June 10, 2026, as the entitlement date for the rights issue. The company's share transfer books will remain closed on June 11, 2026, while the final Schedule-I document was placed on the PSX portal on June 3, 2026.

The rights issue is being undertaken in accordance with the Companies Act, 2017, the Companies (Further Issue of Shares) Regulations, 2020, and applicable Pakistan Stock Exchange requirements.