Islamabad, Sep 20: TRG Pakistan Limited, a shareholder in The Resource Group International Limited (TRGI), announced a significant restructuring plan for its portfolio company, Afiniti Limited, which aims to enhance its financial standing and growth prospects in the AI technology sector.
Key Highlights of the Restructuring Plan:
- Debt Reduction and Maturity Extension:
The plan includes a substantial reduction in Afiniti’s current senior debt and extends the maturity of this debt over multiple years. - Recapitalization:
The restructuring will recapitalize Afiniti’s balance sheet, allowing senior lenders, existing preferred shareholders (including TRGI), and Afiniti management to retain significant equity interests in the business on a fully diluted basis. - Lower Cash Interest Payments:
The plan is designed to reduce cash interest payments significantly, along with providing additional financing, to bolster Afiniti’s growth trajectory. - Value Retention for TRG Pakistan:
This restructuring offers substantial value and upside potential for TRG Pakistan, ensuring that its indirect economic stake in Afiniti remains significant in percentage terms. - Court Approval Required:
The closing of Afiniti’s restructuring is contingent on court approvals in Bermuda and the United States, with an expected completion before the year-end.
Market Impact
As of the announcement, TRG’s stock was trading at Rs. 54.8, reflecting a slight decline of 0.9% or Rs. 0.5, with over 2.24 million shares exchanged on Friday.
This restructuring initiative positions Afiniti to capitalize on growth opportunities in the dynamic AI landscape while strengthening TRG Pakistan’s investment portfolio. Further details will be provided following the completion of the restructuring transaction.
