20000403

16 cos buy back

shares, 11 declare

dividend to get off

defaulters counter

RECORDER REPORT

KARACHI: Sixteen companies have utilised the buy-back of shares option and purchased shares standing in the name of individuals registered in their account books while 11 paid dividend to remove themselves from the defaulting counter of the Karachi Stock Exchange.

Buy-back of shares had commenced in December 1996 mostly on the fear that the companies would be listed on the defaulting, counter. The Karachi Stock Exchange established a defaulting companies counter in 1997, and placed nearly 138 companies on it.

The nature of defaults committed under Listing Regulations were: Under Section 32 (1) (a) i.e. share price quoted below 50 percent of face value for a continuous period of three years, 32 (1) (b) Ñ (the company) failed to declare dividend/bonus for five years from the date of last declaration, 32 (1) (c) (the company's) failure to hold annual general meeting for a continuous period of three years, and 32 (1) (e) failure (of the company) to pay annual listing fee for a period of two years.

Universal Textile Mills Limited bought back shares at Rs 11 per share, Ishtiaq Textile, Transmission Engineering, Tritex Cotton, Valika Art Fabrics at Rs 10 each, Pakistan Hotels Developers Limited for Rs 16, Fecto Sugar for Rs 12, Gillette Pakistan Ltd., for Rs 46.20, First D.G. Modaraba for Rs 12.08, Auvitronics Ltd., for Rs 6.50, Novartis Pakistan Limited and Novartis Pharma Limited for Rs 68 each (some of these were not on the defaulting counter).

Recently, some of the companies which are not on the defaulting counters offered to buy back their shares. These are Yasir Spinning, United Jute and United Carpets. They have offered the rates of Rs 10.50, Rs 11 and Rs 14.75 respectively. Ten companies after paying dividend were taken off the 'defaulters' counter'. These are Sind Fine Textile, Zainab Textile, Al-Jadeed Textile, Latif Jute, Adam Sugar, Bolan Casting, Pakistan Engineering Co. Ltd., Asia Board, Tariq Glass and Premium Textile.

Quality Steel has paid dividend, but remains on the counter as the company had not paid KSE's annual listing fee for four years.