April 20, 2022 (MLN): The Board of Directors of Maple Leaf Cement Factory Limited (MLCF) has recommended to shareholders to purchase/buy back up to a maximum of 25 million issued ordinary shares of the face value of Rs10 each by the company at the spot/current share price.
According to the notice issued to Pakistan Stock Exchange, the purchase period will start from May 26, 2022, to August 15, 2022, or if the buy-back by the company is completed before August 15, 2022, the purchase period shall end on that date.
The purchase/buy-back will be made in cash using distributable profits of the company as required under Section 88(8) of the Act.
The reduced capital would consolidate equity which will improve earnings per share, future dividends and break-up value of the company's share subsequent to the purchase of shares.
Further, it will also provide an opportunity for exit to those members who wish to liquidate their investments at a reasonable price.
The purchase will have a positive effect on the financial position of the company as it will improve EPS, future dividends and break-up value of the company's share, it added.
