The shareholders of Service GlobalFootwear Limited (SGF) have given their approval to the company to make further long-term equity investments in its subsidiary i.e. Service Long March Tyres (Private) Limited of up to Rs1.5 billion.
The listed company, a leading exporter of footwear, in its filing to the Pakistan Stock Exchange (PSX) on Monday, said the shareholder approval came during the extraordinary general meeting of the company held on January 22, 2024.
The shareholders resolved that “the company be and is hereby authorized to make further long-term equity investment of up to Rs1.5 billion for acquiring 150,000,000 right shares of Service Long March Tyres (Private) Limited (SLM), an associated company at par value of Rs10/- each, as per terms and conditions disclosed to the members,” read the notice.
Moreover, the shareholders in its EGM further resolved that the resolution shall be valid for five years from the date of approval by the members of the company.
The shareholders of the company have further resolved that “Hassan Javed, Chief Executive Officer and/or Arif Saeed, and/or Omar Saeed, directors of the company, be and are hereby singly empowered and authorized to undertake the decision of said investment and to do all acts, matters, deeds and things, take any or all necessary actions.”
SLM is an all-steel radial truck and bus (TBR) Tyre manufacturing company in Pakistan, it was set up through a JV between Servis Group and Chaoyang Long March of China.
Back in 2021, SGF raised Rs2.17 billion through the sale of 40.88 million shares in an Initial Public Offering (IPO). The proceeds from the IPO were invested by the company in SLM.