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Breaking: Wateen to Get De-Listed From Stock Exchange



Wateen Telecom New Logo1 Breaking: Wateen to Get De Listed From Stock ExchangeAccording to a notice sent minutes ago to Karachi Stock exchange – it is learned that Wateen, part of Abu Dhabi Group, is planning to de-list from stock exchanges.

According to the document available with ProPakistani, ‘Warid Telecom International’, the majority shareholder of Wateen Telecom, which presently holds 54% of the total issued shares,  has instructed the Board of Directors of the Wateen to buy back the open market shares of the company at a value of Rs. 4.5 and delist the Company from the Karachi, Lahore and Islamabad stock exchanges.

Wateen has said that the price of Rs 4.50 was arrived at after examining the Wateen share’s trading history and applying a premium to the recent share price. “We believe that this will prove equitable for existing shareholders and that this will prove to be a positive step for those currently holding Wateen shares”, commented the official.

It is still unclear if other minor-to-major share-holders will approve this proposed buy-back share price or not.

Company’ share price, which was hovering around Rs 4 in morning, already witnessed a volume of 15 million shares in first 90 minutes of trading.

An official from Dhabi Group said that Group has taken several steps towards consolidating its position in Pakistan and developing greater autonomy over Group companies, for example, getting back 100% control of Warid Telecom by buying back 30 percent stakes from Singtel.

He said that all these steps are being taken as the Group reaffirms its overall commitment to Pakistan in general, and the telecom sector particularly.

According to the notice – Arif Habib Limited was appointed by Warid Telecom as the purchase agent, who will oversee and manage the buy-back process.

Update

Wateen Telecom has issued following statement on the development:

Buy-Back by Warid Telecom International LLC, U.A.E. and consequent De-Listing, of shares of Wateen Telecom Limited Capital restructuring initiated by majority shareholder

Lahore, 29th March 2013: On Thursday 5.30pm, 28th March, 2013, Wateen Telecom’s Board of Directors and Management were informed through an official communique that the company’s largest majority shareholder, Warid Telecom International LLC, UAE (WTI), is intending to acquire all of the issued ordinary shares held by the other shareholders of the Company at a proposed purchase price of Rs. 4.50 (four and a half rupees) per ordinary share, and consequent de-listing from the Karachi, Lahore, and Islamabad stock exchanges.

WTI currently holds 54% of the total issued ordinary share capital of the Company.

“WTI’s buy-back of the shares reflects its strong commitment to Wateen and its local operations, and enables a restructuring,” said Mr David Burlison, a representative of WTI, in his communique to the Board of Wateen Telecom. He added that “WTI believes that the de-listing provides the shareholders with an exit from the business at a return of value which is in excess of that which they would receive on an orderly disposal of the business,” he added.

The Company has conveyed its intention to the stock exchanges in Karachi, Lahore and Islamabad, as well the Security and Exchange Commission of Pakistan in accordance with the Voluntary De-Listing provisions under Regulation 30-A(i), and the Code of Corporate Governance set out in their respective Listing Regulations.

Mr Naeem Zamindar, CEO Wateen Telecom, said, “Wateen Telecom has always been committed to Pakistan and the growth of the telecoms sector. The company’s Board of Directors will be reviewing this offer in its next meeting and will be appointing an independent committee of the Board of Directors to consider the offer further and to make a decision that is in the best interests of all shareholders.”

For the proposed purchase of Wateen, WTI has appointed Arif Habib Limited as the Purchase Agent, who will oversee and manage the buy-back process on behalf of WTI.

Via Economy Age

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  • Wateen Shareholder 2

    About time. Company is finished. Not published one earnings report as required by SECP since 2011. I bought share at Rs 11 after my friends at Wateen convinced me it was good share. It have taken loss of Rs 5.5. Same firm, Arif Habib, that pumped up this share is now buying it at 55% discount to par value.
    If this is not robbery and making fool of investors what is it??

    • jawadahsen

      Its PTCL’s price monopoly that does not allow for other ISPs to sustain in long term

    • Mark Spencer

      You must be stupid to buy it at Rs. 11 when it started at Rs.10 and went down straight away!

      • Check ur Facts

        You idiot it started at Rs 11. Why don’t you check your facts. Arif Habib was selling stocks at Rs 11 after getting it ‘oversubscribed’.

        • Shahid Saleem

          References please? I know it was oversubscribed but I do not remember Rs 11 anywhere.

        • Nabeel

          i didnt find any reference which says it was sold at 11 rs after getting oversubscribed. check your facts!!

    • rashid

      pl see the above mentioned commnts

  • jawadahsen

    First they will buy back shares citing long term commitments to pakistan and then when they have full control, they can close it down ;)

  • wateen shareholder

    TAHT’S A GOOD NEWS :-)

  • farooq

    Good news for Pakistan telecom industry

  • furqan ali

    Does that mean Wateen is Back or!!!!!!!!!!!!!!!!!

    • Omair Ahmed

      Yes they are back with the BANG… after buying shares in cheap prices they are going to upgrade their service to 4G LTE..

      • Shahid Saleem

        After buying back their shares do you think they’ll have the money to upgrade???

  • Imran Siddiqi

    Shocking to heard as their share price is recently increased from 1.80 to 3.90 again loss of poor investors….

  • Madan Lal

    KSE has the power to set the buy back rate and it should set it to minimum Rs 10 so that the buyers in the IPO can atleast get saved (they will lose out on opportunity cost and inflation) but alteast something can be salvaged.

    Warid International LLC should NOT be allowed to buy at 4.5 because they were the beneficiaries of the IPO and sold their shares at Rs 10 to these buyers only to be allowed to buy them back at 55% discount. This is totally unfair.

    We need some KSE Directors to step in and save the day and do the buy back at Rs 10 (minimum price and par value).

    Funny thing is Arif Habib did the IPO and now they are also doing the buy back. Do they have no shame???

  • rashid

    who asked u to purchase shares ppp ki govt the mulk doob raha tha issi liey wateen nay logon say paisa liya ab imrram aa gaya musharaf aa gaya ab to profit making ka waqt ha shares wapis to lainay he hain wateen nay. Wateen pakistan ma unqareeb video call b mutarif karvaen ga cha gaya wateen ab 4.20 pay share hareed k 4.50 pay bach do bacho

  • Bonga

    I suppose Naeem Zamindar and Zohair Khaliq are quickly finding out that they have no business in running broadband in Pakistan. Wateen posted a loss of Rs. 1.6 billion last year. Any competent board would have fired the incompetent CEO, or if he had any shame, he would have resigned on his own.

  • patriot

    If Wateen suffered a loss of 1.6B last year meaning Rs. 133 million/month, then CEO should have been fired right away. Is board of wateen sleeping or what? With such a loss, even a share price of 4.5 is overvalued.

  • Umer Draz

    That is excellent news. Thats why i love wateen

  • Fatima Khan

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  • Shawais

    fitty moonh :@ … so i will bear loss of 5.5 rupees per share wtf.

    by the way what is the procedure to get money back.

  • Shoaib

    Badly managed

  • HARIS

    KSE has the power to set the buy back rate and it should set it to
    minimum Rs 10 so that the buyers in the IPO can atleast get saved (they
    will lose out on opportunity cost and inflation) but alteast something
    can be salvaged.