Key Takeaways
- Pakistan Cables Limited has approved the sale of its 17% stake in CECL.
- The buy-back offer is for approximately Rs350 million at Rs72.24 per share.
- The transaction is subject to obtaining all necessary approvals.
Pakistan Cables Limited (PCAL) has approved the sale of its 17% stake in Chinoy Engineering & Construction (Private) Limited (CECL) to the company for approximately Rs350 million. The decision was communicated to the Pakistan Stock Exchange on the same day.
PCAL currently holds 4,845,000 ordinary shares of Rs10 each in CECL, representing 17% of the company’s issued and paid-up share capital. The buy-back offer is at a price of approximately Rs72.24 per share, amounting to the total consideration of Rs350 million.
The notice from PCAL stated that the proposed transaction is subject to obtaining all requisite corporate, regulatory, shareholder, and other approvals, as well as the completion of necessary documentation and formalities.
Upon the completion of the proposed buy-back, PCAL will no longer hold any shares in CECL. The company will make further disclosures as required under applicable law and regulations upon any material developments related to the proposed transaction.
PCAL, incorporated in Pakistan as a private limited company in 1953 and converted into a public limited company in 1955, focuses on the manufacturing and sale of copper rods, wires, cables, and conductors, aluminium extrusion profiles, and PVC compounds.
The approval of this buy-back is a significant move in the business landscape, reflecting the ongoing consolidation and strategic decisions within the corporate sector in Pakistan.
The transaction is expected to streamline ownership structures and potentially enhance the operational efficiency of both companies involved.
Further details and updates will be provided as the transaction progresses, ensuring transparency and compliance with regulatory requirements.
