August 5, 2019 (MLN): JS Investments Limited has issued a detailed note regarding the petition filed by AKD Investments Management Limited, AKD Opportunity Fund and Golden Arrow Selected Stock Fund Limited.
In a notification sent out to Pakistan Stock Exchange on Monday, the company informed that the Learned Counsel for the Petitioner has challenged the Board Resolution of buying back the minimum free float shares.
To recall, the Board of Directors of JS Investments in its meeting of June 25, 2019 had recommended to the members of their approval by passing a special resolution to buyback of 27,934,840 million, which is contrary to the actual free float shares amounting to approximately 20 million.
Learned Counsel submitted that the actual price is not being determined, which is violative of the Rules of Security and Exchange Commission of Pakistan such as eligibility requirement for the purchase and also the rules of Pakistan Stock Exchange, which deals with volunteer delisting.
In view of the above, the High Court shall issue a notice to the Respondents for a date to be fixed in the 2nd week after summer vacations. In so far as the Petitioners’ rights are concerned, the High Court has restrained the respondents from carrying out the impugned buyback resolution till further orders.
“In compliance with the Order passed by the Honorable High Court and as advised by the Company’s Lawyer, the Company shall not give effect to the Buy Back Resolutions to the extent of the Petitioners” the notice stated.
Resultantly, the Offer Letters issued by the Company for buy back of shares to the said petitioners have been withdrawn.
To the extent of shareholders other than the Petitioners, the purchase period of the buyback process will continue till August 31, 2019.