TRG Saga: It Ain’t Over Until The Fat Lady Sings

March 25, 2025 (MLN): The battle for TRG Pakistan rages on, as this time around Zia Chishti himself has obtained a stay order from the high court of Sindh against the proposed takeover of the company by Greentree Holdings Limited.

The plea continues to remain the same across recent prayers to the courts against the takeover: that the money being used to take over TRG Pakistan is its own.

This money is merely being routed through a wholly-owned subsidiary (Greentree Holdings Limited) of its associate, TRG International Limited (68.8% shareholding), to acquire shares of TRG Pakistan.

We note that Section 86(2) of the Companies Act prohibits such practice, ideally under any garb.

Lately, since the term of the board of directors of TRG Pakistan has also expired, the approval granted by them for such public offers has also become questionable.  

Ironically enough, neither the Securities and Exchange Commission of Pakistan (SECP) nor any of the courts has decided as of yet if this plea is admissible, or not.

Whether the money spent so far by Greentree Holdings Limited belongs to TRG Pakistan.

Whether the shares already purchased by Greentree Holdings Limited, and those to be further purchased under the takeover, shall ultimately belong to TRG Pakistan or not.

This is an age-old “money-trail” problem in the 21st century. How difficult could it be to resolve?

All the vacancies granted so far against the stay orders, more or less, considered whether the stay was maintainable or not.

The institution that is in fact missing from action, and whose responsibility it is to step in and establish rule of law, is the SECP.

Of course, chaos ensues when institutions charged with the implementation and enforcement of the law do not come forward and decide on the matter.

In this instance, an otherwise vibrant technology company has become a rolling stone, so to speak, between the Management and the Shareholders.

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