The Board of Directors of TRG Pakistan (TRGP) has decided to continue with their investment in TRG International (TRGI).
The development was shared by the company in its filing to the Pakistan Stock Exchange (PSX) on Monday.
In its earlier disclosure, dated December 10, the BoD was considering the options offered to it by TRGI: i) either to directly receive (by way of full or partial redemption) its share of TRGI’s liquid assets namely cash and a certain number of shares of Ibex Limited owned by TRGI, or ii) continue with its investment in TRGI.
TRGP added that after having considered the matter in detail, the BoD decided that the company should continue with its investment in TRGI and continue “to work towards further maximising value and capital return of its proceeds for the Company and its shareholders”.
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TRGP further requested TRGI to consider and implement an alternate means of providing direct or indirect value, benefit, and liquidity to the shareholders of TRGP.
The request was duly considered by TRGI and now intends to implement TRGP’s request through housing TRGP’s portion of the liquid assets in a separate wholly-owned subsidiary of TRGI (“SPV”).
“This SPV will, as soon as practicable, utilise all or part of these liquid assets to purchase shares of TRGP from the stock market from time to time, in order to provide value, benefit, and liquidity to the shareholders of TRGP,” read the filing, adding that such transactions will be conducted independently by the SPV per applicable laws.
TRGIL informs TRG: Allocation of liquid assets to shareholders approved
Earlier, TRG International informed TRG Pakistan that its board has approved allocation of its liquid assets to its shareholders.
TRGI 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.
It is also mentioned in the notice that the process and structure for utilisation of the above allocation is expected to be finalised 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.