Service Industries, through its subsidiary, has decided to incorporate a new company in Singapore, HoldCo, according to a stock filing.
According to the stock filing, Service Industries Limited through Service Industries Capital (Private) Limited (SICPL) will hold a shareholding of 16.49 percent in the new company, which will be swapped with Jomo Technologies Pvt Limited.
The acquisition of shares will be carried out without movement of actual capital in terms of State Bank of Pakistan rules and regulations as the deal will be subject to compliance with all applicable laws/ regulations.
Services Industries Limited produces footwear and tyers. It exports its major products to more than 30 countries. The company focuses on the European market but also expanded in the US, Australia, Middle East. The company claims to be the largest footwear exporter in Pakistan, contributing 50 percent to the total footwear exports of Pakistan.
Sri Lankan Subsidiary to be Shut Down
The board of directors of the company has also decided to shut down the operations of the company in its Sri Lankan subsidiary, Service Shoes Lanka from January 15, 2023.
The shutdown of the operation was decided due to the global economic downturn and the prevailing unfavorable business situation in Sri Lanka. Hence, the company will divest its stakes in its Sri Lankan subsidiary.
