Lucky Core Industries Limited (PSX: LCI) disclosed to the main bourse on Thursday that its subsidiary, Lucky TG (Private) Limited, has received approval from its Board of Directors to repurchase its shares.
As per the stock filing, the buyback will be conducted in proportion to LCI’s existing shareholding, which stands at 51 percent in Lucky TG. LCI will maintain its 51 percent ownership in Lucky TG post buyback.
The filing assured that Lucky TG will remain financially solvent and capable of meeting its obligations after the share repurchase.
Lucky TG, a joint venture with Tariq Glass Industries Limited, was established to establish a float glass manufacturing plant with a daily production capacity of up to 1,000 metric tons.
Although the facility was planned to be developed in two phases, with each phase having a production capacity of 500 metric tons per day, economic uncertainties have caused delays, prompting a reevaluation of project timelines.
During this delay, funds allocated to Lucky TG remain unused. Consequently, the Board of Directors of Lucky TG has approved the repurchase of its shares in accordance with section 88 of the Companies Act 2017 and relevant provisions of the Companies Regulations 2024, subject to necessary approvals.
The joint venture partners remain dedicated to completing the project once economic conditions become more favorable.
