Chakwal Spinning Mills Announces Major Investment in Data Centre and Cloud Operations

Karachi: Chakwal Spinning Mills Limited, following a series of board and shareholder approvals, has finalized an investment agreement with PNO Capital Limited to establish Data Centre and Cloud Operations in Pakistan. The total investment amounts to Rs. 7.784 billion.

According to information available from the Pakistan Stock Exchange (PSX), the investment includes Rs. 500 million in equity, with an additional Rs. 400 million in equity to be provided by the company’s sponsors. The remaining Rs. 7.284 billion will be financed through a Convertible Bond, featuring a three-year maturity and an annual coupon rate of 10%, which will be adjusted cumulatively at the end of the bond’s tenure.

The decision comes after the Board of Directors’ meeting on July 12, 2024, and subsequent endorsement by shareholders at the Extraordinary General Meeting on August 2, 2024. In response to these developments, Chakwal Spinning Mills has also appointed Optimus Capital Management (Private) Limited as their financial advisor to oversee the investment proceedings.

This strategic investment is detailed in a disclosure form required under SRO 143(1)/2012 dated December 05, 2012, read alongside sections 96 and 131 of the Securities Act, 2015, included as Annexure-A in the formal announcement.

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