LAHORE – The Lahore High Court on Thursday issued notice to SECP, owners of UBL and others respondents in a petition challenging the sale of UBL with unlawful clarification of Security and Exchange Commission of Pakistan that caused huge financial loss to 29,000 small shareholders of the bank across the country.
The court in its order further directed that that purchase/ acquisition of UBL shares by Bestways Group from Abu Dhabi Group, if conducted, will be subject to final decision of this petition pending before the court.
This order was passed by Justice Umer Ata Bandial on the petition filed by retired pilot Asghar Abbas Gardezi who is a small shareholder of the bank.
The petitioner said according to the Listed Companies (Substantial Acquisition of voting shares and take-Overs) Regulations 2008 and security and exchange commission of ordinance 1969 the sale/ purchase of shares by the respondents Bestways group and Abu Dhabi group is malafide and unlawful and prayed to the court to declare the same as null and void.
The petitioner said the SECP and two UBL owner groups have caused a loss of Rs 1733 million to small share holders from general public and loss of Rs 1811 million to the government of Pakistan which is also a shareholder in UBL.
The petitioner submitted that SECP had unlawfully allowed Bestways Group to become owner of the bank by purchasing shares of the bank from Abu Dhabi group, adding that they had 31.10 percent 30.30 percent of the shares and controlled the bank’s business.
The petitioner stated that on December 30, 2010 news reports said that Bestways Group was acquiring 20 percent shares in UBL in addition to its present holding of 31 percent from Abu Dhabi group after this it will own 51 percent of the total shares of the UBL
He said according to the law Bestways group should have purchased 51 percent shares from the public also at rates of Rs 80 before buying 20 percent shares at rates of Rs 80 from Abu Dhabi Group to become UBL’s owner with 51 percent holding shares of the bank. The UBL share’s market price is Rs 65 per share and sale at Rs 80 could give profit to public which was denied to them. The petitioner said SECP blindly accepted version of the Bestway group and deprived millions of rupee profit which could come to public share holder by shares sale at Rs 80 instead of its sale at Rs 65 in market.
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