AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Service Industries Limited has officially announced the approval by its Board of Directors and shareholders to issue Employee Stock Options for Service Long March Tyres (Private) Limited (SLM), an associated company. This strategic financial maneuver is set to unfold from 2025 to 2030, marking a significant shift in the company’s approach to employee incentives and share distribution.
Under the approved scheme, a total of 91,500,000 ordinary shares, representing approximately 6.0% of the enhanced paid-up capital, will be issued. This initiative is framed within the guidelines of Section 83A of the Companies Act, 2017, and relevant regulations, aiming to bolster employee participation in the company’s growth.
According to information available from the Pakistan Stock Exchange (PSX), this move is expected to expand SLM’s paid-up share capital considerably over the designated period. It could, however, lead to a reduction in the ownership stakes of Service Industries Limited and its subsidiaries—Service Global Footwear Limited and Service Tyres (Private) Limited—whose shareholdings in SLM may decrease to 20.76%, 17.78%, and 9.40% respectively, totaling an aggregate potential decrease to 47.94%.
The planned amendments to the Joint Venture Agreement involving Service Industries Limited, Chaoyang Long March Tyre Co., Ltd of China, Service Global Footwear Limited, and Myco Corporation of Pakistan are intended to facilitate these changes. These adjustments reflect a strategic reshaping of corporate relations and equity structure to accommodate this new stock option scheme.
Stakeholders, including TRE Certificate Holders of the Exchange, have been informed of these developments through an attached disclosure form, ensuring transparency and regulatory compliance in line with the Securities Act of 2015 and the Pakistan Stock Exchange’s Rule Book.