Kohat Cement Company Limited has announced the formation of a wholly-owned subsidiary, Ultra Properties (Private) Limited, marking its entry into the real estate sector.
The cement maker disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.
The new entity will be tasked with “carrying out the real estate business, including marketing and development of all types of immovable properties for sale or rental purposes”.
The formation is subject to requisite regulatory approvals and compliance with applicable laws and regulations, the listed company said.
The Board of Directors (BoD) has further decided to lease out one of its investment properties to the proposed subsidiary, which shall construct multi-story commercial buildings for rental purposes.
“For this purpose, the board has approved an investment of up to Rs750 million in the proposed subsidiary, by way of equity and/or interest-bearing loan,” it said.
The board, in its meeting held on Thursday, also approved the re-appointment of Aizaz Mansoor Sheikh as Chairman and Nadeem Atta Sheikh as Chief Executive of the company for a term of three years.
Moreover, the board also approved the sub-division of the face value of Kohat Cement’s shares from Rs10 per share to Rs2 per share i.e., in the ratio of 5 shares for 1 share.
Kohat Cement Company Limited is a public limited company incorporated in Pakistan under the Companies Act, 1913. The Company is engaged in the production and sale of cement. ANS Capital (Private) Limited is the holding company of the company.
At the time of filing, Kohat Cement’s share price was being traded at Rs435, an increase of Rs35 or 8.75%.
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