Loads Limited seeks shareholder nod for MAIL loan arrangements at AGM

Loads Limited has approved two proposed transactions with its subsidiary or associated company, Multiple Autoparts Industries (Private) Limited (MAIL), and will put them to shareholders at the next Annual General Meeting. According to Mettis Global, the board reached the decision at a meeting on Thursday, and the company informed the Pakistan Stock Exchange through a notice. Both require shareholder approval through a special resolution, as the Companies Act, 2017 stipulates.

The first proposal converts an outstanding Rs652.56mn receivable from MAIL into a formal long-term loan, with no fresh cash paid out. That facility could run for up to seven years and would earn a return of KIBOR plus 3%, paid every quarter in arrears. Principal becomes repayable on demand, and in any case no later than final maturity; the loan carries no security.

A second, separate proposal involves a fresh long-term facility of up to Rs250mn for MAIL's working capital and financial obligations, which could be drawn in tranches after shareholder approval. Its terms match the first loan's tenor and pricing. Loads also confirmed that neither the receivable arrangement nor any disbursement will happen before shareholders grant the required approval.