June 19, 2019 (MLN): A meeting of the Board of Directors of Pakistan Gum and Chemicals Limited was held on Wednesday, wherein the board resolved to delist the shares of the Company from Pakistan Stock Exchange (PSX).
According to the notification issued to PSX, the company has authorized the sponsors to buy-back ordinary shares held by the minority shareholders of the company.
The meeting minutes provided in the notification revealed that the company’s shares remained highly illiquid with daily average of only 2,123 shares traded since 2016 which, on average, traded on 114 days against 220 trading days in a year.
It further disclosed that the Company had been suffering losses since financial year ended 31 December 2015, except a marginal profit of Rs. 18.7 million in 2018.
The board agreed that the Company’s profitability is not expected to improve significantly in the near term due to prevailing adverse market conditions, and that it would be in the best interest of the minority shareholders to be provided a fair opportunity to exit, so that they can invest the fund in other profitable avenues.
