The Board of Directors of Big Bird Foods Limited (BBFL), a Pakistani chicken processing unit, has considered a proposal to convert outstanding loans amounting to Rs1.5 billion into equity.
The loans were payable to directors, the listed company informed its stakeholders in a filing to the Pakistan Stock Exchange (PSX) on Monday.
The proposal, presented by the Chief Executive Officer, suggested issuing new shares at a price of Rs49.42 per share — determined on the basis of the last three months’ average market price — in lieu of repayment of the loans.
“This will strengthen the capital base of the company, a proposal was placed before the Board to convert the said loan into equity through the issue of shares otherwise than by way of rights issue,” read the notice.
However, since the proposed transaction involves directors of the company, the majority of board members were deemed “interested directors” under the Companies Act, 2017, and therefore could not make a valid decision on the matter.
Following deliberations, the Board resolved that the proposal should be placed before the shareholders of the company in a general meeting for their approval in accordance with applicable law.
Meanwhile, as per the company’s latest financial results, Big Bird Foods registered a profit after tax of Rs1.17 billion in FY25, an increase of 39% year-on-year.
Back in June, BBFL entered into a strategic agreement with a Chinese multinational technology company, Alibaba Group.
“Under this agreement, BBFL will gain direct export access to Alibaba’s global B2B e-commerce platforms, including Alibaba.com, enabling BBFL to showcase and sell its poultry and processed food products to verified buyers in over 190 countries and regions,” the company said back then.
BBFL was established in September 2011 as a poultry processing unit to provide quality chicken products in national and international markets.
Subsequently, it was converted into a public limited company on June 01, 2023.
Comments
Comments are closed for this article.