Crescent Modaraba sale deal disposed of by court

May 24, 2024 (MLN): Lahore High Court has disposed of the signed agreement between Crescent Modaraba Management Company Limited and Ansari Brothers (Private) Limited for the sale of CMMCL shares.

First Elite Capital Modaraba (FECM) shared the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.

To note, the majority shareholders of CMMCL, management company of FECM had signed an agreement with Ansari Brothers for the sale of shares of CMMCL.

In this regard, one of the Certificate Holders of the Modaraba had filed a petition before the Lahore High Court, through which, inter alia, the aforementioned transaction had been challenged.

Since there were certain legal infirmities in the process of sale and purchase of the said shares, therefore, in view of the statement of the counsel for FECM, the Court disposed of the said Petition.

“This petition filed with the basic prayer that the respondents be restrained to sell, change in nature and structure of property / assets of FECM. Further management of FECM may not be transferred to any third party without consent of the stake holders,” said the court.

“Assets or management of FECM will not be transferred illegally and without due process of law to any third party,” it added.

It may be mentioned here the petitioner in the said petition had specifically assailed the said agreement between the majority shareholder and Ansari Brothers on the legal yardsticks.

The said agreement was considered as suffering some legal and technical infirmities.

Therefore, the counsel for FECM made the said statement.

"Ansari Brothers had the complete notice of the pendency of the said proceedings before the High Court, but it opted not to contest/participate in the proceedings," the company's notice said.

"That as per the advice received by us from our counsel, the aforementioned agreement between the majority shareholders and Ansari Brothers (Private) Limited is no more in existence, after the order of the High Court," it added.

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