A US arbitrator has denied Zia Chishti, the former chief executive officer (CEO) of TRG Pakistan, a motion to block Greentree Holdings Limited (GHL) from proceeding with a tender offer and to accelerate TRG Pakistan’s board elections.
The development was disclosed by TRG Pakistan in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“TRG Pakistan Limited had previously disclosed on February 17, 2025, that on January 28, 2025, the company’s former CEO, Zia Chishti, filed a motion for preliminary injunction in a US arbitration involving the company, seeking to stop GHL from proceeding with its tender offer, while at the same time accelerating the board elections of the company,” read the notice.
Greentree Holdings’ $52 Million TRG Pakistan share purchase faces legal challenge
The company informed that in an order issued by the US arbitrator on February 28, 2025, Chishti’s motion was denied on both counts.
“Earlier, on November 29, 2024, Chishti had moved for preliminary relief in the same arbitration to place various restrictions on GHL’s voting in a board election of the company.
“In a ruling dated December 9, 2024, the arbitrator had also denied Chishti’s motions.”
Greentree Holdings, which holds a 29.7% stake in TRG Pakistan, launched a tender offer on January 15 to acquire an additional 35.1% stake, with book closure taking place on February 21. The tender was scheduled to remain open from March 6 to March 12, 2025.
Separately, in a different arbitration between Chishti and the company’s associate The Resource Group International Limited (TRGIL) for which a partial final award was issued in late January 2025, Chishti “was found to have materially breached a share purchase agreement among him, TRGIL, the company and others by engaging in unauthorized pledges and sales of company shares”.
As per the notice, Chishti was ordered, inter alia, to comply with the relevant provisions of the agreement going forward and to pay TRGIL’s reasonable attorney fees and costs for the arbitration.
Last month, the Sindh High Court (SHC) restrained Chishti and his wife Sarah Pobereskin from selling or transferring their shares of TRG Pakistan, as a growing number of shareholders filed lawsuits to postpone the Board of Directors (BoD) elections till the next hearing.
Disclaimer: A board member associated with Business Recorder also serves on the board of TRG. All opinions remain independent.
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