Pace (Pakistan) Limited (PACE) has approved an equity investment of up to Rs1.5 billion in associated company Ever Green Water Valley (Pvt.) Ltd., while also approving the divestment of its 15.4% stake in Pace Barka Properties Limited. The decisions were approved by the company’s board of directors and disclosed through a notice submitted to the Pakistan Stock Exchange (PSX) on Friday. The latest developments involve both an additional investment in an associated company and the proposed sale of a substantial shareholding in another associated company, subject to the required corporate and shareholder approvals.
According to the notice submitted to the stock exchange, PACE’s board approved an equity investment of up to Rs1,500 million in Ever Green Water Valley (Pvt.) Ltd. The investment will be made in accordance with the provisions of the Companies Act, 2017, while the specific terms and conditions will be determined by the board. The transaction remains subject to the necessary shareholders and corporate approvals. The proposed investment places additional capital into Ever Green Water Valley, an associated company of PACE, as the listed company continues to manage its portfolio of property-related interests.
Alongside the proposed investment, PACE has also approved the divestment of 73,861,873 ordinary shares in Pace Barka Properties Limited. The shares represent a 15.40% holding in the associated company and carry a par value of Rs10 each. Under the board’s approval, these shares may be sold to First Capital Securities Corporation Limited or another prospective buyer in the market. The transaction will be conducted at a fair value determined in accordance with applicable law and under terms and conditions considered by the company’s board to be in the company’s interests.
The proposed divestment will also require the necessary shareholders and corporate approvals before it can be completed. PACE’s disclosure indicates that the final terms of the transaction, including the fair value of the shares, will be determined in accordance with legal requirements. The company has therefore outlined the board-level approvals while noting that the transactions still need to pass through the relevant approval processes. The move will alter PACE’s investment position in Pace Barka Properties Limited while the company simultaneously plans to increase its equity exposure to Ever Green Water Valley.
Pace (Pakistan) Limited is a public limited company incorporated in Pakistan and began operations in 1995. The company is part of First Capital Group, which has a diversified business portfolio. PACE is engaged in building, acquiring, managing and selling a range of property-related assets and developments. Its activities include departmental stores, condominiums, supermarkets, shopping plazas, housing societies, utility stores and plots, in addition to commercial, industrial and other related activities conducted within and outside Pakistan.
The company has also pursued opportunities beyond Pakistan’s domestic property market. Last year, PACE approved plans to purchase a plot in Dubai, United Arab Emirates, for the development of a commercial project. The planned acquisition represented an expansion of the company’s property activities into an international real estate market. The latest board decisions involving Ever Green Water Valley and Pace Barka Properties add another development to PACE’s portfolio management activities, with the company proposing a sizeable equity investment in one associated company while seeking to divest its stake in another.
The Rs1.5 billion investment and the proposed divestment of the 15.4% holding remain subject to the applicable corporate and shareholder approvals. Until those approvals are completed and the transactions are executed under their final terms, the board decisions represent approved proposals rather than completed transactions. PACE’s disclosure to the PSX provides the basis for the proposed investment and divestment, including the size of the investment, number of shares involved and the requirement for fair-value determination under applicable law.
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