Kohinoor Textile Mills Limited will buy back up to a maximum of 30 million of its own shares constituting 10.023 percent of the issued ordinary shares.
In a notice issued to the Pakistan Stock Exchange (PSX), the company announced that its Board of Directors has accorded approval to the company, subject to the approval of shareholders by way of Special Resolution, in order to purchase/buy back of its own shares through Pakistan Stock Exchange Limited up to a maximum of 30,000 000 of the issued ordinary shares at the face value of Rs. 10 each at the spot/ current share price prevailing during the purchase period in cash and out of distributable profits of the company for cancellation purpose.
The purchase period of the buy-back would be from March 13, 2023, to August 29, 2023, or if the buy-back by the company is completed before August 29, 2023, the purchase period will end on that date.
The company said that the reduced capital would consolidate equity which will improve earnings per share, future dividends, and break-up value of the company’s shares subsequent to the purchase of shares. It will also provide an opportunity to exit to those members who wish to liquidate their investments at a reasonable price.
The company further said that the purchase will have a positive effect on the financial position of the company as it will improve EPS, future dividends, and the break-up value of the company’s share.
The Board of Directors has decided to call an Extraordinary General Meeting (EOGM) of the members of the Company on March 03, 2023, to seek approval of the proposal to purchase shares by passing a special resolution.