Matco Foods to Raise Funds via Rights Issue, Divest Business Unit -

MARKETS

Matco Foods Limited has announced plans to subscribe to a rights issue of its wholly owned subsidiary, Falak Foods Limited, as part of a broader financial restructuring and asset divestment strategy.

In a disclosure submitted to the Pakistan Stock Exchange, the company stated that its Board of Directors, through a resolution passed on April 20, 2026, approved participation in the rights issue at par value to support Falak Foods in raising funds.

The board has also authorized the sale of a business unit comprising immovable property measuring approximately 3.47 acres (27.76 kanals), along with associated buildings, plant, machinery, and equipment located in Tehsil Kamoki, District Gujranwala. The transaction will be carried out against cash consideration.

According to the disclosure, the proceeds for the acquisition of the business unit will be generated by Falak Foods through the rights issue. Despite the transaction, Matco Foods will continue to retain 100 percent shareholding in its subsidiary.

The company noted that this announcement is a continuation of its earlier disclosure dated January 12, 2026, and reflects ongoing efforts to streamline operations and optimize asset utilization.

Market observers view the move as part of a strategic initiative to strengthen the subsidiary’s financial position while unlocking value from non-core assets. – ER News Desk

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