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Karachi, June 26, 2012 (PPI-OT): Millat Tractor Ltd. (MTL) intends to make investment in a subsidiary named TIPEG INTERTRADE JLT with a paid up of AED 2.0 mn divided in 2,000 shares of AED 1,000 each.
According to Alfalah Securities Limited, the investment is yet to be approved in the upcoming EOGM to be held on July 19, 2012. MTL intends to invest AED 1.5 mn (75% equity) while the Sponsors of MTL would invest the remaining AED 0.5mn (25% equity stake) in the said company. The purpose of setting up this company is to enable MTL to export Tractors in excess of local demand through TIPEG. MTL has the capacity to produce 50,000 tractors annually and is able to sell around 40,000 tractors. Setting up of a separate subsidiary would enable MTL to sell its excess capacity and earn higher profits from tractor exports.