Sakrand Sugar Mills board approves revival plan with 25% stake sale to investor consortium

The Board of Directors of Sakrand Sugar Mills Limited has approved, in principle, a revival and restructuring plan aimed at improving the company’s operations, liquidity, financial obligations and long-term shareholder value.

The company disclosed the development to the Pakistan Stock Exchange under Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Limited Rule Book.

According to the notice, the board reviewed and approved the plan at its meeting held on June 23, 2026.

Under the proposed plan, a consortium of investors has expressed willingness to enter into a Share Purchase Agreement to acquire a 25% equity stake in Sakrand Sugar Mills Limited from the existing sponsors.

The company said the prospective investors have experience in the sugar industry and financial capacity to revive and expand its operations.

The proposed share transfer will remain subject to required approvals and clearance from the Exchange.

The incoming investors have also indicated a willingness to settle the company’s outstanding liabilities towards Bank Makramah Limited.

They also intend to arrange cash finance facilities for the 2026-27 crushing season, which the company said would support operations, sugarcane procurement, profitability and liquidity.

As part of the plan, the investors have undertaken to provide Rs100 million as an unsecured and interest-free loan for maintenance, repair and upkeep of plant and machinery.

The loan will be repayable when considered appropriate by the company’s management.

The investors have also provided an undertaking to the board regarding any future right issue, subject to compliance with applicable laws, regulations and approvals.

They have committed to fully subscribe to their entitlement in any future right issue and to subscribe to any unsubscribed portion, subject to applicable laws and regulations.

The investors will also arrange underwriting support if required.

The revival plan also includes support for arranging an additional 2 million maunds of sugarcane through industry relationships and cane development initiatives in the operational vicinity of the mill.

Sakrand Sugar Mills said its board also reviewed and approved preliminary financial and operational projections prepared by the management in connection with the proposed revival plan.

The company said a summary of the projected operational and financial outlook was included in the information package submitted to the board.

Sakrand Sugar Mills Limited’s registered office is located in Karachi, while its mill is situated at Deh Tharo Unar, District Shaheed Benazirabad.