The Board of Directors of Big Bird has decided to seek shareholder approval for a proposal to convert outstanding director loans into equity, the company stated in a notification to the Pakistan Stock Exchange (PSX).
The company currently owes its directors Rs. 1.5 billion, and the proposed conversion would be for Rs. 49.42 per share, based on the average market price over the last three months.
According to the Chief Executive Officer, this move is aimed at strengthening the company’s capital base. The plan involves issuing new shares to directors in exchange for the outstanding loans, but not through a traditional rights issue.
During the board meeting, it was noted that most directors present were considered “interested directors” under the Companies Act, 2017, and therefore could not participate in the decision. After discussion, the board unanimously resolved to place the proposal before the company’s shareholders at a general meeting, in line with legal requirements.
Shareholder approval will be sought in accordance with the law before any conversion takes place.
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