Islamabad, Dec 19: Treet Battery Limited announced today that its Board of Directors has approved a strategic plan to convert a significant portion of its debt into company shares, a move designed to reduce borrowing and lower financing costs.
The plan, which is subject to shareholder and regulatory approval, involves converting approximately Rs. 2 billion of inter-company debt owed to Treet Corporation Limited (TCL) into 200,316,630 ordinary shares of Treet Battery. This will be done by issuing new shares to TCL, bypassing the need for a rights offering.
In addition, the Board has also approved a proposal to increase the company’s authorized capital. The authorized capital, currently at Rs. 10 billion, will be raised to Rs. 11 billion. This will involve increasing the number of ordinary shares from 1,001,000,000 to 1,100,000,000, each with a face value of Rs. 10.
To obtain shareholder approval for these changes, Treet Battery will hold an extraordinary general meeting on January 10, 2025, in Lahore. The company emphasized that these moves reflect its commitment to strengthening its financial structure and delivering long-term value to shareholders. By converting a portion of its debt into equity, Treet Battery aims to improve its balance sheet and enhance its financial stability moving forward.
