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Karachi, Fazal Cloth Mills Limited, a leading textile manufacturer, announced in an emergent board of directors meeting held on May 12, 2023, that it has passed resolutions approving an investment in Fatima Energy Limited (FEL) amounting to PKR 282 million.
The investment will be made through the subscription of non-voting, non-cumulative, non-participatory, and redeemable preference shares of FEL, in accordance with the terms and conditions approved by the board.
The shareholders of Fazal Cloth Mills Limited granted their approval for the investment in FEL during the meeting, subject to the final approval of the company’s shareholders. The resolution further specified that the investment of PKR 282 million will be considered a long-term investment in the non-voting, non-cumulative, non-participatory, and redeemable preference shares of FEL. The board of directors of Fazal Cloth Mills Limited has been fully authorized to determine the appropriate manner of investment.
Additionally, the resolution authorized the directors of Fazal Cloth Mills Limited to invest in preference shares of FEL in a single or multiple tranches over a period of three years, as and when rights letters are offered by FEL or when shares are allocated against unsubscribed rights portions by the board of directors of FEL.
This approval encompasses investment in multiple tranches and eliminates the need for individual approvals for each tranche, unless changes to the terms and conditions of preference share issuance are reflected in the Articles of Association of FEL. The board of directors is also authorized to delegate their powers to the Chief Executive of Fazal Cloth Mills Limited to undertake and complete all necessary corporate and regulatory formalities related to the investment.