Karachi June 26 2022: AEL Textiles Limited (Formerly: Arshad Energy Limited) listed at PSX, share price gained PKR 1.00 or 7.49% to hit the upper limit of PKR 14.00 during the last trading session on Friday despite being in the Defaulter Segment on announcement of company will be quoted under Textile Composite Sector w.e.f. Monday June 27, 2022.
Earlier, the company requested for change of sector from Power Generation & Distribution Sector to Textile Composite Sector, after the approval of the Registrar of the companies for change of Business.
The Board of Directors of the Company in its meeting on 27 January 2022 has approved the disposal of Company's assets located at 35 - Kilometers, Sheikhupura Road, Tehsil Jaranwala, District, Faisalabad. Moreover it was also decided to initiate the implementation of the Alternate / Revival Business Plan of the Company for textile trading and manufacturing. The proceeds from the proposed disposal of the assets will be used to repay the current / non-current liabilities of the Company and the remaining portion will be utilized for the implementation of the Alternate / Revival Business Plan as mentioned above. These decisions were also approved by the members of the Company in the extraordinary general meeting held on 24 February 2022. As per Alternate / Revival Business Plan, the Company has received quotations from different parties including Related Parties (Arshad Textile Mills Limited & Arshad Corporation Private Limited). After detailed consideration in Board meeting, sale of assets to Related Parties were approved.
Earlier on 23 November 2021, Automotive Plastics (Private) Limited (APPL), made a public announcement of intention to acquire more than 51% ordinary shares together with management control of the Company in accordance with the provisions of Securities Act, 2015 and Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. Currently this matter is under discussion between the directors of the Company and APPL, and negotiation for the purpose of entering into a formal share purchase agreement is being finalized.