Page 34 - CCL AR 2017 Final

will be installed at Gadoon Amazai, Khyber Pakhtunkhwa Province for which the company has already acquired
8 acre land close to the existing factory. The total cost of the project is around Rs. 1.7 billion and it is expected to
be completed by July 2018. By virtue of this project, the company will be able to further diversify its operations
and better allocate its fixed costs, which will increase its profitability.

In order to finance this project, CPL has announced issuance of 13.50% right shares on the existing paid-up
capital of the Company in the ratio 13.50 shares for every 100 shares held. The right shares will be issued at
an issue price of Rs. 125/- per share including a premium of Rs. 115/- per share. By virtue of existing
shareholding in CPL, CCCL will be entitled to subscribe 293,599 shares. However, it may acquire additional
306,401 shares by subscribing any available right shares. The details of the investment are stated below:

(i) Name of the associated company or Cherat Packaging Limited (CPL).
associated undertaking along with criteria
based on which the associated relationship is Mr. Akbarali Pesnani, Mr. Arif Faruque and Mr.
established; Shehryar Faruque are also directors of CPL.
CCCL intends to make an equity investment of up
to Rs. 75 million by subscribing the right shares
offered by CPL. Dividend from CPL will benefit
CCCL as it will enhance its Other Income, which
(ii) Purpose, benefits and period of investment; will benefit the shareholders of the Company.
Furthermore, addition of a good asset will also
strengthen the financial statements of the company
and will diversify its risk. This will be a long term
investment by CCCL.

CCCL intends to make equity investment of up to
(iii) Maximum amount of investment; Rs. 75 million by subscribing the right shares
offered by CPL.

Rs. 125/- per share including a premium of Rs.
(iv) Maximum price at which securities will be 115/- per share.
acquired;

(v) Maximum number of securities to be Up to 600,000 shares will be acquired
acquired;

(vi) Number of securities and percentage thereof Before : 2,174,808 shares 7.35%
held before and after the proposed After (max up to): 2,774,808 shares 8.25%
investment;

(vii) In case of investment in listed securities, Rs. 253.35
average of the preceding twelve weekly
average price of the security intend to be
acquired;

(viii) In case of investment in unlisted securities, Not applicable.
fair market value of such securities
determined in terms of regulation 6 (1)
(ix) Break-up value of securities intended to be Rs. 135.68
acquired on the basis of the latest audited
financial statements;

32
Cherat Cement
Company Limited