A UAE-based conglomerate has signed a Non-Binding Indicative Term Sheet with TPL Trakker (TPLT) for the purchase of a large equity stake in Trakker Middle East (TME), a subsidiary of TPLT.

The development was shared by TPL Trakker Limited, a subsidiary of TPL Corp Limited, in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“In continuation to the announcement of the company dated February 26, 2024, we are pleased to announce that the company has signed a Non-Binding Indicative Term Sheet with a UAE-based conglomerate for a large equity stake in Trakker Middle East (TME), an associated company of TPL Trakker Limited,” read the notice.

TPLT said that the proposed transaction shall be contingent upon approval from the relevant regulatory authorities, satisfactory completion of due diligence, obtaining requisite internal approvals and entering into definitive documentation.

“The proposed transaction is anticipated to be completed by May 31, 2024,” added the notice.

Last month, the Board of Directors of TPLT allowed the management to commence talks with the conglomerate for the acquisition of TME.

TME provides fleet management and location-based services across the GCC region.

The subsidiary offers a wide array of hardware, software, and solutions, ranging from fundamental telematics to state-of-the-art IoT technology.

The notice, back then, read that over the next 12 to 24 months, TME intends to extend its presence into three to four additional countries with Saudi Arabia among the targeted expansions.

Last year, TPLT CEO Harris Jamali, told Business Recorder that its Middle East subsidiary has shown significant growth of 40% despite having a comparatively low workforce of around 35 people.

“TPLT’s Middle East subsidiary has been earning good foreign currency revenue,” Jamali said. “It works closely with Dubai police.

“The Middle East business showed 40% growth in the first half (of fiscal year 2023),” said Jamali, who joined TPLT in November 2022 as CEO. “And revenues are increasing.”

TPL Vehicle Tracking (Private) Limited was incorporated in Pakistan on December 27, 2016. Its name was changed to TPL Trakker (Private) Limited next year. The Company is a subsidiary of TPL Corp Limited and TPL Holdings (Private) Limited is the ultimate parent company.

The principal activities of the company include installation and sale of tracking devices, vehicle tracking and fleet management services.