Company has decided to disinvest its 100% shareholding of around 313 mn
shares (78.79% of total paid up capital) ordinary shares in Agritech
(formerly Pak American Fertilizer) to support the
reprofiling/restructuring of the debt. The names coming up as potential
buying parties are Arif Habib Group, Fauji Fertilizer and Nishat Group.
ANL is a composite textile unit involved in production of denim products
and around 85% of the revenue is generated through exports. Recently as
the price of yarn shot up drastically, due to which the company faced a
hit on gross margins and accompanied by heavy financial charges resulted
in a loss of PkR 0.15 per share in the bottom line for the 1QFY10. The
main purpose of the company to offload Agritech is to generate fund to
restructure its debt. ANL holds debt of PkR 15.25 bn and debt to equity
ratio of 45:55. In March 2010, ANL offered some of its stake in
Agritech to general public at a price of PkR 30.0. However, this time
the offer price is not yet known. In case ANL manages to sell the
remaining entire stake at a price of PkR 30.0 per share; it would be
able to raise funds amounting to PkR 9.4 bn from which after retiring
the debt would result in improvement of stand alone after tax earnings
by PkR 1.88 per share.
So it seems that the JS Group is finally coming under pressure. Azgard Nine has been under investigation by the SECP for insider trading/price manipulation of shares due to which many small shareholders have lost their savings.
ReplyDelete