Agritech Limited’s declaration of right preference shares to the ordinary shareholders

Agritech Limited’s declaration of right preference shares to the ordinary shareholders

Karachi: We have to inform you that the Board of Directors in their meeting held on July 30, 2011 at 10:00 A.M at the Registered Office of the Company have declared the following:

1. Right Issue of Preference Shares

Issuance of 40.60 Right Preference Shares for every 100 Ordinary Shares at a price of Rs. 10 per share held by the Ordinary Shareholders i.e. 40.60% Right.

In this connection we are also enclosing herewith following documents in compliance with the requirements of Companies (Issue of Capital) Rules, 1996:

Financial Projections together with purpose of the right issue, benefits to the Company and use of funds.

2. Merger of Hazara Phosphate and Agritech Limited (AGL)

Merger of Hazara Phosphate Fertilizers (Private) Limited (HPFL) together with all the property, assets, rights, liabilities and obligations of every description of the HPFL by and into the Company on the basis of the Scheme of Amalgamation.

3. Increase of Authorized and Paid up Capital Share Capital

You may please inform to the members of the exchange accordingly.

The Notice of EOGM will be sent to you separately.

Agritech Limited

Financial Projections

 

FY 2012 FY 2013 FY 2014

(Rupees)

Sales 9,165,156,000 10,081,671,600 10,686,571,896
Cost of Sales 3,988,936,817 4,254,788,451 4,455,348,136
————– ————– ————–
Gross Profit 5,176,219,183 5,826,883,149 6,231,223,760
Administrative and Selling Expenses 542,701,312 596,971,443 656,668,588
————– ————– ————–
Operating profit 4,633,617,871 5,229,911,705 5,574,555,172
Finance Cost 3,266,866,783 3,195,965,146 2,873,089,469
Other charges 176,447,939 231,473,119 283,659,717
————– ————– ————–
3,443,314,723 3,427,438,265 3,156,749,186
————– ————– ————–
Profit before taxation 1,190,203,148 1,802,473,441 2,417,805,986
Provision for taxation 130,774,560 141,895,866 149,998,826
————– ————– ————–
Profit after taxation 1,059,428,588 1,660,577,575 2,267,807,160

Purpose of Preference Shares

To convert the outstanding mark up on long term loans into Preference shares to improve the financial health and future prospects of the company.

Benefits

Conversion of outstanding markups into equity of the company. Improved equity of the company. Reduction in finance cost.

Use of Funds

To convert the existing markup payment obligations of the company in respect of its long term loans into equity for the lenders of the company.

Financial Projections of Three Years

Attached Annexure (A)

For more information, contact:
Muhammad Ijaz Haider
Company Secretary
Agritech Limited
Ismail Aiwan-e-Science building,
Main Ferozpur Road,
Lahore Pakistan
Tel: +9242 111-786-645
Fax: +9242 35751841

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