Treet Battery Limited has announced significant financial restructuring measures aimed at improving its financial position and reducing borrowing costs. The decisions were approved during a Board of Directors meeting held on Thursday, December 19, 2024, and are subject to shareholder and regulatory approvals.

Key Decisions Announced

1. Conversion of Inter-Company Borrowing into Equity
   The Board approved the conversion of a portion of the company’s inter-company borrowing from Treet Corporation Limited (TCL) into equity. The borrowing, amounting to PKR 2.003 billion (including principal and accrued interest), will be converted into 200.3 million ordinary shares of Treet Battery Limited. This conversion will be executed through the issuance of shares to TCL by way of an offer other than a rights issue, subject to approval from shareholders and the Securities and Exchange Commission of Pakistan (SECP).
2. Increase in Authorized Capital
   The company plans to increase its authorized 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 increase will require an amendment to the company’s memorandum of association and is also subject to shareholder approval.
3. Extraordinary General Meeting Scheduled
   To seek shareholder approval for these measures, the company has scheduled an Extraordinary General Meeting (EOGM) on January 10, 2025, at 10:30 AM at Ali Auditorium, Ferozepur Road, Lahore.

Impact of the Restructuring

The conversion of inter-company borrowing into equity is expected to significantly reduce Treet Battery Limited’s borrowing levels and financing costs. This move reflects the company’s commitment to strengthening its financial structure and delivering long-term value to its shareholders.

In a statement, the company emphasized that these measures are part of its broader strategy to enhance financial stability and operational efficiency. The proposed increase in authorized capital will provide the company with greater flexibility to raise funds for future growth and expansion.