Ghani Chemical Industries to Issue Ordinary Shares of Wholly-Owned Subsidiary

The Board of Directors of Ghani Chemical Industries Limited (PSX: GCIL) has approved significant amendments to its scheme of arrangement during a meeting held on January 21, 2025. Under the revised structure, GCIL will now issue ordinary shares of its wholly-owned subsidiary, Ghani ChemWorld Limited (GCWL), to its shareholders. “GCIL has decided to issue ordinary securities of Ghani ChemWorld Limited (GCWL) to the shareholders of the Company instead of the earlier envisaged partially redeemable shares under the original Scheme,” the company said in a stock filing on Tuesday. This replaces the earlier plan to issue partially redeemable shares under the original scheme. The decision aligns the scheme with existing legal and regulatory frameworks as recommended in SECP’s comments to the Lahore High Court (LHC). To facilitate this adjustment, the Board has incorporated a new Article (Article 7) into the scheme as an addendum. The article provides details on the issuance of ordinary shares and its subsequent impact on GCWL’s capital structure. Additionally, the Board has approved a revised share entitlement ratio. The new swap ratio certifies that for every 1,000 shares of GCIL held, shareholders will receive 500 shares of GCWL. Alternatively, one share of GCWL will be issued for every two GCIL shares held.