The Board of Directors of Lucky TG (Private) Limited, a subsidiary of Lucky Core Industries Limited, has allowed the company to buy back its shares, Lucky Core Industries Limited (PSX: LCI) informed the main bourse on Thursday.
According to the stock filing, the buy-back will be in proportion to LCI’s current shareholding (i.e. 51 percent) in Lucky TG. LCI will continue to retain 51 percent shareholding in Lucky TG following the buy-back.
“Lucky TG will continue to remain solvent and be able to meet its financial obligations subsequent to the buy-back of shares,” the filing added.
Lucky TG is a joint venture company with Tariq Glass Industries Limited which was incorporated to set up a float glass manufacturing facility with a production capacity of up to 1,000 metric tons per day.
The facility was intended to be set up in two phases having a production capacity of 500 metric tons per day each with the expectation that the first phase of the facility would become commercially operational during FY 2024-25. However, uncertain economic conditions have caused a delay and necessitated a reassessment of the project timelines.
During such a period that the project is delayed, the funds in Lucky TG remain unutilized. Accordingly, the Board of Directors of Lucky TG has granted Lucky TG approval to buy back/purchase its shares in accordance with section 88 of the Companies Act 2017 read with relevant provisions of the Companies Regulations 2024, subject inter alia, to obtaining requisite approvals.
The joint venture partners remain committed to completing the project as soon as the economic environment becomes more conducive.
