Karachi May 30 2024: Tariq Glass and Lucky Core Industries have decided to withdraw funds from their joint venture, Lucky TG Limited (LTG), due to project delays caused by the economic slowdown.
LTG was established as a joint venture company between Tariq Glass Industries Limited (“TGL”) and Lucky Core Industries Limited (“LCI”) with the primary objective of developing an advanced greenfield float glass manufacturing facility with a production capacity of up to 1000 Tons Per Day. However, due to the prevailing economic conditions in the country, the project has not progressed as planned, leading to delays and necessitating a reassessment of the project timelines.
As considerable funds are lying dormant in LTG in the form of paid-up capital injected by TGL and LCI, the Board of Directors of LTG has approved the buyback of its shares in accordance with Section 88 of the Companies Act 2017, read with the relevant provisions of the Companies Regulations 2024, subject to the requisite approvals. The buyback will be proportionate to TGL’s current shareholding (i.e., 49%), and TGL will continue to maintain its 49% shareholding in LTG subsequent to the completion of the buyback transaction.
The joint venture partners remain committed to completing the project as soon as the economic environment becomes more conducive.
