Synthetic Products Enterprises Ltd (PSX: SPEL) has announced its decision to buy back 9,986,801 of its own shares.
According to a stock filing, the buyback exercise constitutes 5 percent of the issued and paid-up ordinary shares of SPEL with a face value of Rs. 5 each at the current share price prevailing during the purchase period in cash and out-of-distributable profits of the Company for holding them as Treasury Shares.
The Board of Directors (BoD) of the company has recommended 31st March 2023 to 20 September 2023 as the purchase period for the buyback exercise.
“The purchase/buyback will be made in cash using the Company’s distributable profits as required under Section 88(8) of the Act,” the filing read.
It also said, “It will provide an opportunity to those members who wish to liquidate their investments at a reasonable price. The purchase will have a positive effect on the financial position of the Company the free cash will be converted to Treasury Shares”.
SPEL’s BoD has decided to call its Extraordinary General Meeting on Friday, 24 March 2023, to seek approval of the proposal to purchase shares by passing a special resolution.
According to the stock filing, the Shares Transfer Books of SPEL will remain closed from 18-24 March 2023 (both days inclusive). Physical transfer/CDS Transaction IDs received at the Company’s Share Registrar THK Associates Private Limited will be considered in time to determine the shareholders’ voting rights for attending the meeting.
To note, SPEL is principally engaged in the manufacturing and sale of plastic auto parts, plastic packaging for food, FMCG, molds, and dies.
At the time of filing, the company’s scrip at the bourse was Rs. 10.77, up 10.24 percent or Rs. 1 with a turnover of 1,147,000 shares on Tuesday.