Business managers at the Mansha group are simply too shrewd to be considered ordinary. While those big boys at the bourses are happy making Golas and Ulta-golas in petty scrips, those in Mansha house are doing the same at a much bigger scale. To those unfamiliar with these local market terms, here is a quick tutorial; both are relatively short-term trading positions with the Gola being buying low and selling high, and Ulta-gola being selling high and buying low.
Nishat Mills plans to increase its shareholding in MCB Bank back to 8.03 percent - a stake that fell to 6.92 percent when the textile composite off loaded part of its holding for the sake of MCBs GDR in October 2006, at a price of Rs 264 in PKR terms. Repurchasing roughly the same quantity at current market prices, the deal would fetch NML a return of Rs 225 million.
This comes just weeks after MCB sealed the RBS deal at a cheap 0.7 times the book value, and there is noise in the market that MCB intends to sell its RBS portion in a couple of years time but, of course, at a much better price. And if that really is the plan, it could potentially yield huge returns to NMLs shareholders who will likely agree to the deal when they meet next month. And who is the main beneficiary - Nishat group sponsors ie Mansha family. It is pertinent to note that the Mansha family directly holds 18 percent of NML, 42 percent of MCB, 3.58 percent of DGKC and 0.06 percent of Adamjee Insurance.
This total equals 35 percent (Rs 55 billion) of combined market of Rs 160 billion of these four companies, with the family enjoying complete control rights in all ventures. This is a classic example of pyramiding ie diluting ownership rights while maintaining control rights.
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STRUCTURE OF FAMILY OWNERSHIP IN MANSHAS LISTED VENTURES
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TOTAL FAMILY MARKET CAP OF
MARKET CAP HOLDING FAMILY HOLDING
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Rs (mn) (%) Rs (mn)
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NML 11387 18.04 2,054
AICL 11381 0.06 7
DGKC 10719 3.58 384
MCB 126,617 42 53,179
TOTAL 160,104 35 55,624
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