Adamjee Insurance Company has decided to acquire a stake in Hyundai Nishat Motor (Pvt) Limited (HNMPL), a joint venture of the South Korean car maker and Nishat Group, according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.
Subject to regulatory approvals, the board of directors has decided to invest Rs 850 million in HNMPL by acquiring 85 million ordinary shares. Besides, the insurance firm would issue a credit guarantee worth Rs 1 billion in favor of HNMPL for 7.5 years.
The board also approved entering into agreements with joint venture partners, associates and others with regard to equity participation in HNMPL and related matters.
Nishat Group entered into an investment agreement with Hyundai Motor Company (HMC) earlier in February 2017. It will have production facilities in M-3, Industrial City, Sahianwala, FIEDMC, Faisalabad.
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