An extraordinary general meeting of the company held last week adopted a resolution approving an investment of Rs.700 million to acquire a meat processing factory at Pannala including the leasehold rights to the land on which it stands.
KFP told its shareholders that its existing factory at Ja-Ela was reaching maximum capacity and the acquisition of a production facility belonging to D&W Food Products (Pvt) Limited had given the company the advantage of commencing increased production immediately as opposed to setting up a new production facility.
KFP plans to expand this factory to meet the increased demands of the market and has estimated the cost of expansion at Rs.650 million.
The company is floating a rights issue of two ordinary shares of the company for every share presently held priced at Rs.60 to raise funds for the acquisition and expansion.
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