Habib Sugar Mills Limited (PSX: HABSM) has decided to buy back up to 15 million shares of the company, it informed the Pakistan Stock Exchange on Tuesday.
The Board of Directors of Habib Sugar Mills Limited has decided “to recommend to the members of the Company for their approval by passing of special resolutions, the purchase/buy-back of up to 15,000,000 (Fifteen Million) issued ordinary shares of the Company (constituting 10% of the current issued ordinary share capital) of the face value of PKR 5/- (Pak Rupees Five) each, by the Company”.
Buyback Salient Features
| Description | Recommendation |
| Purpose of Purchase | Cancellation of Shares |
| Mode of Purchase | Through PSX |
| Indicative number of ordinary shares proposed to be purchased | up to 15,000,000 shares having face value of Rs. 5 per share |
| Indicative percentage of ordinary shares proposed to be purchased | 10% of the total paid-up shares of the company |
| Purchase price per share | Shares will be purchased from time to time at spot/current price acceptable to the company prevailing during the purchase period |
| Purchase period | From February 2, 2024, to July 30, 2024 (both days inclusive) or till such date that purchase is complete |
| Source of funds | The purchase of shares will be made out of distributable profits of the company. HABSM will use its internally generated cash flows and ensure the availability of funds for the buy-back |
| Justification for buy-back and effect on the financial position of company | The buy-back will have a positive impact on the financial position of the company. It will improve the EPS and break-up value of the company’s shares, and provide an opportunity for exit for shareholders who wish to liquidate their investments. |
The Company is engaged in the manufacturing and marketing of refined sugar, ethanol, liquefied carbon dioxide (CO2), and household textiles, providing bulk storage facilities, and trading of commodities.
