The Pakistan Credit Rating Agency Limited
26-Nov-19
Analyst
Ayesha Malik
ayesha.malik@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Ratings | Jun-19
- PACRA_Methodology_Holding Company_FY19 | Jun-19
- PACRA_Methodology_Debt Instrument_FY19 | Jun-19
- Methodology | Sukuk | Jun-19
- Criteria | Rating Modifier | Jun-19
Related Research
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PACRA Withdraws Preliminary Debt Instrument Rating of Mega Conglomerate (Pvt.) Limited | Short Term Sukuk
| Rating Type | Debt Instrument | |
|
Current (26-Nov-19 ) |
Previous (10-Jun-19 ) |
|
| Action | Withdraw | Preliminary |
| Long Term | - | - |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Mega Conglomerate (Pvt.) Limited proposed to issue a Sharia compliant, short term, rated, unsecured and privately placed Sukuk of PKR 8,500mln inclusive of Greenshoe option of PKR 4,500mln (at 3 months KIBOR + 1.25%, redeemable at maturity i.e. 6 months from the issue date). The Company decided not to issue the instrument. Thereby PACRA withdraws preliminary Sukuk Rating of 'A1' with immediate effect.
About
the Entity
Mega Conglomerate (Pvt.) Limited (Mega) was incorporated as a private limited company in 2010 in Pakistan under the repealed Companies Ordinance, 1984. The registered office of the Company is situated in Karachi, Pakistan. The Company is owned by Mr. Habibullah Khan (56%) and Mrs. Nusrat Khan (44%). Mr. Habibullah Khan is the founder and Chairman of Mega & Forbes Group. Mega has strategic investments of PKR 24.6bln (as at Dec-18) in an associated company - Hub Power Company Limited (HUBCO) and wholly owned subsidiaries – Mega Foods (Pvt.) Limited, formerly called VMFG (Pvt.) Limited, and G4 Mega Pakistan (Pvt.) Limited (G4). Mega Foods has 56% stake in Haleeb Foods, whereas, G4 owns 100% stake in Imperial Developers and Builders (Pvt.) Limited (IDBL). IDBL is engaged in real estate development and has sizable investment property in Karachi.