PSX's bid to acquire CDC shares hits a wall

August 01, 2023 (MLN): The Pakistan Stock Exchange (PSX) will not be proceeding to acquire Central Depository Company of Pakistan Limited (CDC)’s shares from IGI Investments (Private) Limited and Allied Bank Limited since the Securities and Exchange Commission of Pakistan (SECP) has not acceded its approval to such investments, the notice issued by PSX on Tuesday reads.

The commission’s approval was required as per the terms of the Central Depository (Licensing and Operations) Regulations, 2016, it added. 

Earlier, PSX expressed its intention to acquire 1,949,995 ordinary shares of Rs10/- each in the CDC, from IGI Investments, a shareholder of CDC.

As per the PSX's previous notice, the shares will be purchased for Rs25/- per share, amounting in aggregate to Rs48,749,875.

Accordingly, in line with the approval of PSX's Board of Directors, PSX had executed a shares purchase agreement with IGI for acquiring shares in CDC as an equity investment of Rs48,749,875/, which was subject to the consent of PSX's shareholders as required under Section 199 of the Companies Act, 2017, and other legal and regulatory approvals, where required.

Copyright Mettis Link News