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Tuesday June 18, 2024

Gargash to acquire TME stake

By Our Correspondent
May 25, 2024
A logo of the Gargash Group seen in this undated photo.—Facebook@GargashGroup/file
A logo of the Gargash Group seen in this undated photo.—Facebook@GargashGroup/file

KARACHI: TPL Trakker Limited (TPLT) has entered into a strategic partnership with UAE-based conglomerate Gargash Group, which will acquire a 50.1 percent equity stake in TPLT's associated company Trakker Middle East Limited (TME).

“In continuation to our announcement dated March 11, 2024, we are pleased to announce that the Board of Directors has authorised the company to approve the fresh equity injection in its associated company Trakker Middle East Limited (TME) and to sign binding agreement with Gargash Group, which will be acquiring 50.1 percent equity stake in TME,” the TPLT said in a notice to the Pakistan Stock Exchange (PSX) on Friday.

TPLT said that the acquisition will be executed through the issuance of new shares of TME.Established in 1918, Gargash Group is one of the UAE’s leading business enterprises. Today, the group comprises a family of internationally renowned brands operating across four verticals: automotive, real estate, financial services and F&B.

The group has introduced leading global automotive brands into the UAE, including Mercedes-Benz, Alfa Romeo, GAC MOTOR, SIXT Rent Car, SIXT Leasing & SIXT Limousine.“This strategic partnership and new equity injection in TME represent a significant milestone for the Company which will not only accelerate the company’s growth in Middle East but also provide an excellent platform to showcase our innovative IoT products to a broader audience,” the statement said.

“By leveraging Gargash Group’s well-established market influence, we anticipate substantial growth and a strengthened market presence in the Middle East,” said TPLT.“We are confident that this strategic partnership will significantly enhance our growth trajectory and market footprint, positioning our company for substantial success.”