Service Global Footwear Limited has announced that its board has approved entering into a joint venture with China-based Golden Star Footwear Group Limited to set up a project for manufacturing and selling non-leather footwear in Pakistan, with plans to export products as well.
In its disclosure to the stock exchange, the company said the proposed joint venture company will be formed with a 51 percent equity stake held by Service Global Footwear and 49 percent by Golden Star Footwear Group.
The board also approved incorporating a separate joint venture company, subject to name approval by the relevant authorities.
As part of the plan, Service Global Footwear intends to make a long-term equity investment of up to Rs. 1 billion in the proposed joint venture over a period of five years. The investment will be made from time to time and will be subject to shareholder approval under the relevant provisions of the Companies Act, 2017.
Additionally, the company plans to lease a land parcel measuring 136,816 square feet along with a building having a covered area of 79,760 square feet, located at 10 km Muridke–Sheikhupura Road in Muridke, Punjab, to the proposed joint venture company for one year. The company noted that leasing the building will also require prior shareholder approval as per applicable corporate regulations.
The company said that a notice of an extraordinary general meeting to seek shareholders’ approvals will be issued in due course.
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