Treet Corporation Limited (PSX: TREET) has announced the successful divestment of 11.3343% of its shares in Treet Battery Limited (TBL). According to a notice submitted to the Pakistan Stock Exchange (PSX), the company liquidated 99,977,721 shares as of November 30, 2024. Following this transaction, Treet Corporation’s shareholding in TBL now stands at 85.76% of its paid-up capital.
In addition, the Board of Directors has reviewed and approved a proposal from TBL to convert a portion of its inter-company loan and accumulated interest into equity. This will be achieved through the issuance of additional shares without a rights issue.
TBL has requested the conversion of Rs. 2,003,166,300, which is expected to result in the issuance of 200,316,630 new shares at a price of Rs. 10 per share, pending approval from the Securities and Exchange Commission of Pakistan (SECP). This move aims to optimize TBL’s financial position and enhance the company’s equity returns.
The notice also revealed that the Board has approved a second phase of divestment to further reduce borrowing levels and enhance shareholder value by lowering borrowing costs.
This phase involves reducing the company’s shareholding in TBL by up to 231,639,658 ordinary shares, subject to market conditions and strategic considerations. The shares may be sold in the open market or through negotiated deals, either in one lot or multiple lots, as deemed appropriate by the company’s management.
