Interloop to Acquire US-Based Top Circle Hosiery Mills

Interloop Limited (PSX: ILP) has decided to acquire a controlling interest in Top Circle Hosiery Mills, the company informed the Pakistan Stock Exchange on Friday. According to the stock filing, the Board of Directors of ILP has approved long-term equity investment to acquire the controlling interest in the US-based company, and subsequent BMR in the manufacturing plant and for that purpose, to enter into Share Purchase Agreement, Share Holders Agreements, and other ancillary and incidental arrangements. ILP has also decided to enter into an Asset Purchase Agreement with the subsidiary of its Associate i.e., Socks & Socks Pvt. Limited. The BoD has decided to increase the Authorized Share Capital of ILP from Rs. 15 billion divided into 1.5 billion Ordinary Shares of Rs.10/- each to Rs. 50 billion divided into 5 billion Ordinary Shares of Rs.10/- each and consequent alteration in the Memorandum of Association (MOA) of the Company. ILP has further approved potential transactions with the Related Parties intended to be carried out in the financial year ending on June 30, 2024, and to authorize the BoD to carry out such Related Party transactions at its discretion from time to time, irrespective of the composition of the Board of Directors. The Company also decided to ratify the interim Bonus Shares for the year ended June 30, 2023, already issued and credited, in the proportion of 50 shares for every 100 shares held i.e. 50 percent. Interloop is a vertically integrated multi-category Full Family Clothing Company, manufacturing Hosiery, Denim, Knitted Apparel, and Seamless Activewear, for top international brands and retailers, besides producing Yarns for a range of textile customers.