Masood Textile Mills Limited has announced a proposed change in its shareholding structure after two Chinese investors agreed to sell a combined 18.31% stake to UAE-based Velora Global Ventures F.Z.C., subject to regulatory approvals.

According to a notification submitted to the Pakistan Stock Exchange (PSX), Shanghai Challenge Textile Co., Ltd., which currently owns 25.77% of Masood Textile Mills, has entered into a Share Purchase Agreement to divest 7.00% of the company's issued and paid-up share capital to Velora Global Ventures.

The transaction will be completed through 11 equal quarterly instalments, subject to the fulfillment of contractual obligations and all applicable legal and regulatory requirements in Pakistan.

In a separate agreement, Zhejiang Xinao Industry Company Limited has agreed to sell its entire 11.31% shareholding in Masood Textile Mills to the same UAE-based investor. This transaction is expected to be executed in 10 equal quarterly instalments, pending regulatory clearances.

Following the completion of both transactions, Velora Global Ventures F.Z.C. will acquire a combined 18.31% stake in Masood Textile Mills through phased acquisitions spread over approximately three years, in accordance with the respective Share Purchase Agreements.

The proposed acquisition remains subject to approval from the Competition Commission of Pakistan (CCP) and other applicable regulatory requirements. Velora Global Ventures has confirmed that it will submit the required pre-merger application to the CCP before the transaction can proceed.