Haseeb Waqas Board halts buyback on price surge

July 28, 2025 (MLN): Haseeb Waqas Sugar Mills Limited (PSX: HWQS) has disclosed that its Board of Directors has decided not to proceed with the proposed share buyback, citing concerns over a significant and speculative surge in the company’s share price.

The Board observed that the price of each share increased by more than 200%, despite the company not being in operation and having no prospects of return.

It was noted that the share price was around Rs10 on June 26, 2025, with a three-year weighted average also around Rs10 per share, the company's filing on PSX revealed today. 

The abrupt price hike was deemed purely speculative, aimed at benefiting market speculators seeking to sell their shares at artificially inflated prices back to the company.

The Company Secretary confirmed to the Board that none of the sponsors or officers of the company, directly or indirectly, participated in any share trading after the buyback intimation, ensuring transparency and no personal gain from the market activity.

After detailed deliberations, the Board expressed grave concern over the speculative behavior and unanimously resolved not to proceed with the share buyback under the current circumstances and to suspend any further related activity.

Additionally, the Board discussed the company’s future plans and was informed by the Chairman that efforts are underway to revive mill operations for the 2025-26 season.

These efforts include the sale of off-balance sheet assets, though the process has been delayed due to the ongoing slowdown in the real estate sector.

However, further scrutiny reveals deeper concerns surrounding Haseeb Waqas Sugar Mills Limited (PSX: HWQS) as it moves toward delisting from the Pakistan Stock Exchange.

The company, mired in legal setbacks and operational paralysis, has formally expressed its intent to delist, with a buyback price decision expected in the Board meeting on July 25, 2025.

Notably, insiders purchased 1.65 million shares in April 2023, before any formal buyback notice, at an average price of Rs6.55, while the stock now trades near Rs29.80.

Additionally, an associated firm quietly transferred its 8.96% stake to a related party without disclosure, raising transparency concerns.

Despite claims of optimism in its 2024 annual report, including undisclosed capacity upgrades, the company cited lack of funds as the reason for delisting.

It holds Rs1.75 billion in land and Rs1.68bn in deferred tax assets, yet faces a Rs4.5bn debt burden.

Auditors have flagged serious issues: tax defaults, blacklisting, unfunded liabilities, loan defaults, and unresolved payables. These developments raise red flags around governance and minority shareholder protection.

Copyright Mettis Link News