Lucky Cement’s (LUCK) board of directors has decided to invest up to Rs4 billion in Lucky Core Ventures (Private) Limited and National Resources (Private) Limited.
LUCK, one of the country’s largest cement manufacturers, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
According to the statement, the firm’s board “has resolved to invest, in the form of equity, an amount of up to Rs3 billion in Lucky Core Ventures (Private) Limited (LCV), a wholly-owned subsidiary of Lucky Core Industries Limited, by share subscription.”
“Subsequent to the above investment, the company (LUCK) will hold a minority share in the shareholding of LCV,” read the notice.
Lucky shared that the investment is being undertaken together “with other companies comprising the Yunus Brothers Group and the aggregate shareholding of such companies, excluding LCI is not intended to exceed 49% of the total share capital of LCV. The precise shareholding pattern of LCV shall be determined at a later stage.”
It said that the investment is subject to compliance with the applicable laws, including obtaining the necessary corporate and regulatory approvals.
The board has also also recommended making an investment of an amount of up to Rs1 billion in its associated company, National Resources (Private) Limited (NRL).
“Part of the investment will be undertaken through the acquisition of up to 33.33% ordinary shares of NRL, from Yunus Brothers Pakistan Limited, associated company / related party of the Company, for an aggregate purchase price of up to Rs253 million,” it said.
“The company would also invest further amounts in NRL from time to time, by way of providing loans/advances to NRL and/or subscribing to shares of NRL (i.e. making equity investments in NRL), as determined by the authorized representatives of the Company, in the aggregate amount of up to Rs747 million.
“The potential investments will be utilized for conducting pre-feasibility studies including satellite and geographical mapping and drilling,” said Lucky.
NRL is a joint venture between three business houses of the country, including the Yunus Brothers Group, and has been established to carry out activities in the field of exploration and mining of metals (mainly gold and copper).
NRL has been granted an Exploration License over an area of approximately 499.17 square kilometres in the Chagai district of Balochistan.
Lastly, Lucky Cement’s board also approved the construction of a 6 MW solar power project at its Pezu plant in Khyber Pakhtunkhwa.
The project is expected to be completed by the end of FY 2024, it said.
The company said its initiatives for investment in renewable energy projects will play a key role in cost savings as well as reduction of country’s reliance on imported fuel.“