KARACHI: Treet Corporation Limited, one of the oldest corporations in the country has received advances against the sale of its subsidiary Global Art Limited. The corporation intends to reduce financial costs in a result of the selloff.

“Regarding a signing of a Sales purchase agreement for the sale of 100% shareholding of Global Art Limited we have received an amount of Rs270 million,” the statement issued today at the Pakistan Stock Exchange (PSX) by Treet Corporation Limited said.

The decision to sell the Global Arts in its entirety was taken in February 2020. To manage this, first Treet will have to make Global Arts its wholly owned subsidiary, in order to completely divest from it. Currently, Treet owns 88.76% of Global Arts. The remainder is owned by Treet Holding Ltd., and Renacon Pharma. Global Arts also owns roughly 10% and 14% shares in Renacon and Treet Holdings respectively.

The corporation had planned to make a sale in December 2020. Earlier, the company had said it wanted to reduce its borrowing costs. Once the subsidiary is sold, the company expects the finance cost to reduce by Rs300 million annually.

Treet Corporation was set up in 1952 and is almost as old as the country itself. Companies within the group are semi-autonomous units responsible for their own budgeting, new products launch, market decisions, and new venture exploration and pricing.

Operating as strategic business units, they are treated as internal profit centers by the corporate headquarter of Treet Corporation limited, the holding company. These business units develop their business strategies though independently from other businesses but are trained to remain in-tune with broader corporate business policies.

Corporate strategy by the parent company seeks to develop synergies across business units by sharing and coordinating staff, making investments in these units and using them to complement other corporate business activities.

The business of the Treet group includes manufacturing and selling of shaving blades/disposable razors, manufacturing and selling of corrugated packaging, manufacturing, and selling of soaps, assembling and selling of motorcycles (including Rickshaws),  educational projects, manufacturing and selling of lead-acid batteries, labor-hire services, floatation and control of modarabas, manufacturing and selling of high quality hemodialysis concentrate for all brands of dialysis machines.

The author is a senior business and economy journalist . He has worked for leading local and international news organisations.

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