Lafarge Pakistan Cement Ltd has called an extraordinary general meeting on 29 October 2013 to seek approval from shareholders to make arrangements to settle an outstanding payment of PKR1.434bn (US$13.5m).

According to company, this amount represents technical and managerial support provided to the company by Pakistan Cement Holding Ltd (PCHL) which is payable in foreign currency. The continuous devaluation of Pakistani Rupee is posing increasing exchange losses to the company. With the company’s inability to settle this amount immediately, the PCHL has requested that Lafarge issue shares in lieu of the outstanding payables.

The proposed price at which the shares will be issued is PKR 9 each, at a discount of 10 per cent is due to the average value of the share being below par value.