Pakistan International Container (PSX: PICT) is facing an uncertain future following the expiration of its concessionary agreement with Karachi Port Trust which expired in June, 2023.
“The Concession Agreement with Karachi Port Trust (KPT) expired on June 17, 2023, and the Concession premises have been taken over by KPT on June 18, 2023. The terminal operated by the Company at Berths 6 to 9 pursuant to the Concession Agreement was its principal line of business. Resultantly, the fundamentals of future business operations have ceased with the expiry of the Concession Agreement,” PICT said in a stock filing on Monday.
The company has embarked on a review of future business opportunities. The review has been concluded and has not revealed any immediate financially viable business opportunities, the filing stated.
In accordance with the Concession Agreement between KPT and PICT, PICT is required to keep its legal existence for a minimum of 3 years following the expiry of the Concession Agreement. During this period, the Company will on a regular basis scan the market for any financially attractive business opportunities compatible with related provisions in its constitutional document.
According to the filing, the PICT is actively involved in a complex handover procedure with KPT, including the smooth transition to the new Concession holder. Works are being performed on a cost-compensatory basis. The work also involves efforts to secure future employment opportunities for our employees with the new concession holder.
The company also informed that its CEO Khurram Khan tendered his resignation to the Board. “The Board has accepted Mr. Khan’s resignation effective October 16th, 2023 and puts on records the Board’s appreciation for Mr. Khan’s valuable contribution to PICT. The Board is in the process of filling up a casual vacancy of CEO,” it said.
PICT is a subsidiary of ICTSI Mauritius Limited whereas its ultimate parent company is International Container Terminal Services Inc.
The company’s scrip at the bourse closed at Rs. 65.83, down 4.32 percent or Rs. 2.97 with a turnover of 877,600 shares on Monday.
