KARACHI: TRG Pakistan Ltd announced on Monday that it will allow its share of liquid assets – to be received from its partner TRG International – to be parked in a special purpose vehicle (SPV) to ensure “value, benefits and liquidity” for shareholders.
The SPV, owned by TRG International, will purchase shares of TRG Pakistan from time to time on the stock market, he said in a regulatory filing.
TRG Pakistan owns 45 percent of the shares of TRG International, which recently sold one of its businesses, E-Telequote.
This enabled TRG Pakistan to obtain an inflow of dollars commensurate with its stake in TRG International.
The locally listed company told investors on December 10 that its US-based partner had approved the allocation of liquid assets to shareholders, which would result in an inflow of around $ 120 million.
The portion of TRG Pakistan’s liquid assets includes $ 10 million in deferred cash. In addition, the company will also receive 5.4 million shares of its listed holding company, Ibex Ltd.
According to Arif Habib Ltd, TRG Pakistan could either directly receive a portion of the cash from TRG International (cash or a number of shares of Ibex Ltd) through full or partial redemption, or continue its investment in TRG International. .
Its board of directors has decided to opt for the latter, which means continuing to “work to further maximize the value and return on capital of its revenues for the company and its shareholders”.
TRG Pakistan Ltd’s share price rose 7.5% to Rs 114.41 each on Monday.
Posted in Dawn, December 21, 2021