June 25, 2019 (MLN): JS Investments Limited in its meeting held earlier today, i.e. June 25, 2019 has decided to recommend to purchase/ buy back up to a maximum of 27,934,840 of its issued ordinary shares of the face value of Rs.10 each, at a purchase price of Rs.18 per share.
According to an official announcement released by the company, the shares will be purchased through tender offer from August 2, 2019 to August 31, 2019. It was further stated that the purchase will be made in cash & out of distributable profits of the company.
The notification also added that the purchase will improve the EPS subsequent to the purchase and will also result in improved dividend. Moreover, it will provide an opportunity of exit to those members who wish to liquidate their investments.
As a result of this action, the company’s financial position is expected to improve as the company will utilize available funds to purchase capital which is in excess of the company’s requirements.
In this regard, the Board of Directors have decided to convene an Extra Ordinary General Meeting on July 24, 2019 to the seek members’ approval to the aforementioned proposal to purchase shares.
