The Karachi Stock Exchange (KSE) is going to lose listed shares of over Rs 2.99 billion or $ 29.91 million as the Unilever Overseas Holdings, the parent company of Unilever Pakistan Limited, has agreed to buy back ordinary shares of the food giant at Rs 15,000 per share.
According to market sources, the Unilever Overseas Holdings had a couple of months back decided to go for voluntary delisting from the KSE of the Unilever Pakistan. The proposed delisting was to be done through the buyback of some 199,400 ordinary shares of the company.
The company, in an earlier letter had proposed Rs 9,700 as per share price of the Unilever Pakistan. The sources, however, said the proposed buyback was to be evaluated by the KSE Board of Directors. So a special committee of the KSE did not agree to the proposed Rs 9,700 price for the buyback. A special committee of the KSE, in its March 26 meeting, proposed that the shares of Unilever Pakistan be de-listed at Rs 15,000 per share.
The price was disagreed by the Unilever management which, the sources said, visited and held a special meeting with the KSE committee last Saturday (March 30), off day for the stocks market.
The company management, the sources said, had then agreed to pay Rs 13,200 to the Unilever stakeholders, but the proposal again faced a deadlock. Eventually, the KSE body had set a deadline up to 5pm of to March 2 (Tuesday) for the company to decide the disputed rate. Tuesday saw the Unilever Overseas Holdings agreeing to Rs 15,000 for each of the company’s share.
“Unilever Overseas Holdings Limited conveys its acceptance of the purchase price of Rs 15,000 per share recommended by the Special Committee and fixed by the Exchange,” Amar Naseer, an attorney of the London-based Unilever Overseas Holdings, informed the managing director of the KSE through a letter Tuesday.
Referring to KSE’s letters of March 26 and April 1, which were issued after discussions with the KSE’s special committee, the Unilever agreed to the quantum of shares to be purchased as determined by the regulator under Listing Regulation No. 30-A(ii).
The company also has asked the Unilever Pakistan to convene an Extraordinary General Meeting as early as possible to seek the shareholders’ approval through a special resolution for the voluntary delisting of the shares of Unilever Pakistan.
This acceptance on the part of international firm means that the company would be paying around Rs 2.991 billion or $ 29.91 million to the holders of 199,400 ordinary shares of Unilever Pakistan.
Tuesday saw the Unilever’s share price witnessing the “highest” increase of Rs 634.45 to close at Rs 13,323.45.
Unlike Rs 10 of other scrips, the face value of the Unilever shares also was set at Rs 50.
KSE to lose $29.9m equity as Unilever opts for buyback
