Karachi: Service Global Footwear Limited has announced the approval of a new Employee Stock Options scheme for its associated company, Service Long March Tyres (Private) Limited (SLM), set to commence between 2025 and 2030.
The initiative, as detailed by the company’s recent disclosure to the Pakistan Stock Exchange, involves the issuance of up to 91.5 million ordinary shares, representing approximately 6.0% of SLM’s enhanced paid-up share capital. According to information available from the Pakistan Stock Exchange (PSX), the terms of the existing Joint Venture Agreement with Chaoyang Long March Tyre Co., Ltd of China, Service Industries Limited, and Myco Corporation of Pakistan will be amended to facilitate this new stock option plan.
The plan outlines that the new shares will be issued sporadically over the five years from 2025 to 2030. This issuance could potentially reduce the shareholding percentage of Service Global Footwear in SLM to as low as 17.78%, depending on the number of shares issued during the period.
The announcement aligns with the provisions of Section 83A of the Companies Act, 2017, and related regulations, ensuring compliance with the legal frameworks governing securities in Pakistan. This development is expected to impact the capital structure of SLM while providing employees a stake in the company’s growth.
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