TRGIL informs TRG: Allocation of liquid assets to shareholders approved

KARACHI: TRG International (TRGIL) Friday informed TRG Pakistan (TRG) that its board has approved allocation of its liquid assets to its shareholders.

TRG portion of the liquid assets would amount to $120 million (inclusive of $10 million in deferred cash) along with 5.4 million shares of IBEX Limited (IBEX) which is worth $72 million, based on last closing of $13.4 at Nasdaq.

“We believe that out of this liquid asset consideration of $120 million for TRG, there are two options for TRG either to distribute it through cash dividend to shareholders or announce a buy back,” Umair Naseer at Topline Securities said.

“Considering local regulations, we think buy back is difficult,” he said. “If TRG decides to announce cash dividend than it could be Rs 33-35 per share based on $110 million of liquid assets,” he said.

It is also mentioned in the notice that the process and structure for utilization of the above allocation is expected to be finalized by December 31, 2021 and TRG will make the announcement accordingly in due course.

Currently, TRG holds 45 percent of TRGIL which indirectly hold 63 percent of IBEX and with this share transfer TRG international will transfer 5.4 million of shares holding to TRG Pakistan.

Copyright Business Recorder, 2021