Ghani Chemical Industries to List Subsidiary At PSX

The Board of Directors of Ghani Chemical Industries Limited (PSX: GCIL) in their meeting held today has approved the Demerger/Merger Scheme of Compromises, Arrangement, and Reconstruction (the Scheme) to list Ghani ChemWorld Limited (GCWL) at PSX.

This Scheme is subject to approval by the Lahore High Court, and all other related matters, the company said in a stock filing on Monday.

The main features of the Scheme are as under:

1. To carve out Calcium Carbide Project that is being set up by the Company at Hattar Special Economic Zone from GCIL to Ghani ChemWorld Limited (GCWL/at present wholly owned subsidiary of GCIL).
2. To merge the leftover assets of Ghani Products (Private) Limited (GPL/an associated company) with and into the GCIL against One to One SWAP ratio.
3. To issue and allot Partially Redeemable Shares of GCWL to the shareholders of GCIL in the ratio of 50:1,000 (50 Partially Redeemable Shares of Rs. 100/- each of GCWL against 1,000 ordinary shares of GCIL) i.e. Rs. 5,000 worth of partially redeemable shares* will be given to the shareholders of GCIL against 1,000 ordinary shares having face value of Rs. 10,000/-
   *partially redeemable shares of Rs. 100/- each (with par/nominal value divided into a redeemable portion of Rs. 90/- per share and an irredeemable potion of Rs. 10/- per share)
4. To issue and allot 70 Million additional ordinary shares of GCIL to the GCWL.
5. To list the GCWL at PSX after submission of requisite documents.

The Scheme will be circulated to the PSX and shareholders in due course subject to directions/order of the Honorable Lahore High Court and in accordance with the applicable law, the filing added.

At the time of filing, GCIL’s scrip at the bourse was Rs. 10.92, down 2.93 percent or Rs. 0.33 with over 2.25 million shares on Monday.