Sargodha Spinning Mills to de-list from PSX, wind-up business

Sargodha Spinning Mills today informed of their de-listing from the Pakistan Stock Exchange, after Chief Executive of the Company Mian Farrukh Naeem informed the exchange that “the Board of Directors in their meeting held on May 28, 2018 has approved the Delisting of the Company from Pakistan Stock Exchange Limited through buy back of Shares by sponsors at the rate intrinsic value per share i.e. Rs. 40.33 per share subject to approval of PSX.”

The Sargodha Spinning Mills on 6^th of April, 2018 decided “to dispose of the balance plant and machinery of the company and to utilize their sale proceeds partially to meet the present liabilities of the company and to start the new business.”

The management regarding the sale of assets had earlier informed that, “the company’s one unit was closed in April 2015 and second unit stopped its operation since September 2015 due to shortage of working capital and funds for balancing and modernization of existing old plant. The management explores various options to run the plant but plans not worked due to heavy losses and current market condition; the bankers are reluctant to extend new facilities to the company”.

Furthermore, it informed the exchange that “the management has signed agreement for sale of land at rupees 1,585.313 million (rupees 422.750 million more than price approved by shareholders) and down payment of rupees 317.063 million has received. The negotiation with various intended buyers of Plant & Machinery (remaining) is in advance stage and hopeful the disposal process will be completed in next one year.”

During the Extra Ordinary General Meeting held on 02 April, 2018 the company mentioned its future plan business to “dispose of the Land and other assets of the Company and to enter into trading of man-made fibers (including but not limited to polyester, viscose and/or tencil), cotton, yarn and investment in listed securities under the prevailing circumstances.”