The Resource Group International Limited Pakistan (TRG Pakistan) declared on Monday that it will continue its investment in TRG International (TRGI), according to the company’s filing to the Pakistan Stock Exchange (PSX).
TRG Pakistan, which holds a 45% stake in TRG International at present, informed the PSX on 10 December that TRGP’s Board of Directors (BoD) was considering the option that TRGI had offered it, which entailed either directly receiving its share of TRGI’s liquid assets (cash and a certain number of shares of Ibex Limited owned by TRGI), or continue with its investment in TRGI.
According to the company’s latest announcement, its BoD decided after considering the matter in detail and in view of the long-term strategy “to continue to work towards further maximizing value and capital return of its proceeds for the Company and its shareholders”.
TRGP revealed that it had requested TRGI to consider and implement an alternate means of providing direct or indirect value, benefit, and liquidity to the shareholders of TRGP. It added that the request was duly considered by TRGI, which now intends to implement TRGP’s request by housing the latter’s portion of liquid assets in a separate, wholly-owned subsidiary of TRGI (‘SPV’).
The filing mentioned that the “SPV will, as soon as practicable, utilize all or part of these Liquid Assets to purchase shares of TRGP from the stock market from time to time, in order to provide value, benefit, and liquidity to the shareholders of TRGP”.
Moreover, all such transactions will be conducted independently by the SPV in accordance with the applicable laws.
The TRGI Board had previously approved the allocation of its liquid assets to its shareholders, whereby TRG Pakistan’s portion would be approximately $120 million, and approximately 5.4 million additional shares of its listed portfolio company, Ibex Limited.
In the previous filing to the PSX, TRG also highlighted that the process and structure for utilization of the allocation are expected to be finalized by 31 December.
