Masood Textile Mills Limited (MTM) has informed the Pakistan Stock Exchange (PSX) of a proposed share acquisition that could result in Velora Global Ventures – F.Z.C. acquiring an aggregate 18.31% stake in the company over the next three years. The disclosure was made in accordance with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the PSX Regulations.
According to the company’s notification, the proposed transaction involves the purchase of shares currently held by Shanghai Challenge Textile Co., Ltd. and Zhejiang Xinao Industry Company Limited. Both shareholders, along with the prospective buyer, have informed MTM that they have entered into agreements for the phased transfer of shares.
Shanghai Challenge Textile Co., Ltd., which currently holds approximately 25.77% of Masood Textile Mills’ issued and paid-up share capital, has agreed to divest a 7.00% stake to Velora Global Ventures. The transfer is expected to take place in eleven equal quarterly installments, subject to the fulfillment of contractual terms, regulatory approvals, and all applicable legal requirements in Pakistan. The shareholder clarified that the communication is intended solely to keep the company informed and does not require any approval from MTM. The details are outlined in the shareholder’s letter on page 2 of the filing.
Meanwhile, Zhejiang Xinao Industry Company Limited has agreed to dispose of its entire holding of 7,636,550 ordinary shares, representing approximately 11.31% of MTM’s issued share capital. This transfer is planned to be completed through ten equal quarterly installments, also subject to contractual obligations and regulatory clearances. As with the previous transaction, the company emphasized that the notification is for information purposes only and does not require action by Masood Textile Mills. The proposed disposal is described in the letter reproduced on page 3.
Velora Global Ventures – F.Z.C. confirmed that the two separate share purchase agreements together represent a proposed acquisition of 18.31% of Masood Textile Mills’ issued and paid-up share capital. The buyer stated that the acquisition will be executed in phases over an estimated period of three years.
The acquisition remains subject to obtaining clearance from the Competition Commission of Pakistan (CCP), along with all other applicable legal and regulatory approvals. Velora Global Ventures noted that it will submit the required pre-merger application to the CCP and will share the Commission’s acknowledgement with MTM once it is received. These details are provided in the buyer’s letter included on page 4 of the filing.
At this stage, Masood Textile Mills has acted solely as the recipient of the notifications from the selling shareholders and the prospective buyer. The company has disclosed the proposed transaction to the market to comply with regulatory requirements, while the completion of the acquisition remains contingent upon the fulfillment of the agreed conditions and the receipt of all necessary approvals.
