CSIL terms DSL’s statement of investment offer misleading

January 14, 2022 (MLN): Crescent Star Insurance Limited (CSIL) which is a major stakeholder in Dost Steel Limited (DSL) termed DSL’s material information intimated on January 14, 2022, regarding an investment offer from a potential investor to invest in the share capital of the company misleading, the company's filing on PSX showed on Friday.

Earlier today, DSL informed that it has received an offer from a potential investor to invest in the share capital of the company up to 29% of the diluted paid-up share capital of the company by way of the issue of shares other than rights offer mechanism,

In a notification to the bourse, CSIL stated that the investment offer announcement by DSL has been made with malafide intentions to divert the attention from the EOGM requisitioned by shareholders who collectively represent more than 10% of total voting power for the objects given in the EOGM including removal of directors.

The said requisition for EOGM was received by the company on December 23, 2021, requiring the company to call the EOGM on the objects stated in the requisition which includes removal of directors failing which we with support of other shareholders who have requisitioned will the EOGM on January 19, 2022.

The notification further states that the said material information is contradictory to the stance taken by DSL and its sponsors before Civil Court Lahore where they have alleged that CSIL earlier material information announcements have dissuaded the potential investors from investing in DSL.

Therefore, the credibility of this material information is questionable and lack the following very important information for the understanding of shareholders such as:

  • The name of the potential investor has not been declared.
  •  As a prelude to due diligence, the tentative price at which shares otherwise than right will be issued and the amount of investment to be made by the potential investors has not been disclosed.
  • What is meant by an Investment of 29% of the diluted capital? How will capital be diluted?

CSIL has already advanced and is a major stakeholder and have been demanding issuance of shares otherwise than Right of the invested amount together with markup charged and is being continuously denied the issuance of shares. Now shares otherwise than Right are being proposed to be issued to some potential investor speaks of ill intention and malafide.

CSIL reserves the right to challenge the issuance of shares to the potential investor, the notification added.

CSIL asked DSL to immediately withdraw the said material information otherwise CSIL will take appropriate actions as necessary.

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Posted on: 2022-01-14T17:04:15+05:00

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