Islamabad, Aug 19: In order to start up a data center and cloud operations in Pakistan, Chakwal Spinning Mills Limited and PNO Capital Limited have signed a term sheet for an investment of Rs 7.784 billion.The Board of Directors of the firm met on July 12, 2024, and this decision was ratified by the shareholders at the August 2, 2024, Extraordinary General Meeting (EOGM).
Chakwal Spinning Mills complied with Sections 96 and 131 of the Securities Act, 2015 as well as Clause No. 5.6.1(a) of the PSX Regulations by notifying the Pakistan Stock Exchange (PSX) of this information via notice on Monday.The notification stated that, of the entire investment, Rs 500 million will be given as equity, subject to an additional Rs 400 million being contributed by the company’s sponsors.
A three-year-old convertible bond with an annual coupon rate of 10% would be used to raise the remaining Rs 7.284 billion. The coupon rate will be modified cumulatively at the conclusion of the tenor.To support the investment and associated financial activities, Chakwal Spinning Mills has also designated Optimus Capital Management (Private) Limited as its financial advisor.
In its foray into the technology industry, Chakwal Spinning Mills is taking a big step forward with this move, seizing new prospects in data center and cloud operations, utilizing fresh prospects in the expanding sector of data center and cloud operations in Pakistan’s digital economy.
The Chakwal Spinning Mills Limited Board of Directors (BoD) authorized the Memorandum of Understanding (MOU) for a merger/acquisition with a top technological company in Pakistan in January 2024. The selected technology company has a global presence in the USA, UAE, Philippines, and China, according to the notice it sent to the PSX. Interestingly, Chakwal Spinning Mills is a textile spinning company.
