KARACHI: TRG Pakistan Ltd said on Friday that one of its associated companies, TRG International, has approved the allocation of its cash to shareholders, which will result in an inflow of around $ 120 million.
A regulatory filing has stated that the portion of the liquid assets of TRG Pakistan Ltd will include $ 10 million in deferred cash. In addition, the company will receive 5.4 million shares of its listed holding company, Ibex Ltd.
TRG Ltd owns 45% of TRG International which indirectly owns 63pc of Ibex Ltd, listed on the Nasdaq. Therefore, the value of the Ibex Ltd shares received will be approximately $ 72 million based on the company’s last closing price of $ 13.40 in the US stock market, according to Topline Securities.
TRG International recently sold one of its businesses, E-Telequote. This enabled TRG Pakistan Ltd to obtain an inflow of dollars commensurate with its stake in TRG International.
Topline Securities said that TRG Pakistan Ltd has two options for spending the cash consideration of $ 120 million: it can either distribute it through a cash dividend or announce a share buyback. âConsidering local regulations, we think a buyout is difficult. If TRG Pakistan Ltd decides to announce a cash dividend, it could amount to around Rs 33-35 per share based on $ 110 million in liquid assets, âhe added.
The company said in its regulatory notice that the process and structure for using asset allocation will be finalized by December 31.
In a separate notice, the company said Hasnain Aslam has been appointed director and CEO of TRG Pakistan Ltd with effect from December 10. He replaced Muhammad Ziaullah Khan Chishti who resigned on November 29 after an employee at a company linked to TRG Pakistan Ltd testified before a US Congressional committee last month that Mr. Chishti sexually assaulted her during the a business trip.
Posted in Dawn, le 11 December 2021