ISLAMABAD: Attock Gen Limited (AGL) has urged Governor State Bank of Pakistan (SBP) to remit dividends of Rs 975 million to non-resident shareholders, as current delay is effecting further investment.
In a letter to Governor SBP, Chief Executive Officer (CEO), AGL, Adil Khattak referred to his letter of April 19, 2024 stating that the SBP has not responded positively from SBP to allow its authorised dealer - Faysal Bank Limited - for remittance of outstanding dividends “to our foreign shareholder” the Attock Oil Company Limited (AOC), incorporated in United Kingdom.
“It is deeply worrying to note that foreign investors who have brought precious foreign exchange into the country, despite multiple risk factors, are being mistreated in this manner,” he further wrote.
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According to CEO AGL, the Company’s dividends for the years 2022-23 and 2023-24 have been declared and sent to authorised dealer (M/s Faysal Bank Limited) complete in all respects for remittance to AOC amounting to PKR 975 Million. However, it is very unfortunate that such remittance has been delayed by more than eight months, despite multiple correspondences/ reminders held on the subject. With the latest improvement in country’s forex reserves, it is imperative that the stock of pending payouts is cleared at the earliest amounting to Rs 975 million.
The AOC effectively owns 83.32% of Company’s shares through direct and indirect shareholding and such unwarranted delays have greatly deteriorated investor confidence in the local business environment and institutional policies, he said adding that despite huge foreign investments in the past, the foreign investor (AOC) is facing inordinate delays in receiving payouts, which is also hampering management’s ability to attract future investments.
“There is tremendous mounting pressure on the management and consequently may impact further investments, disinvestment of existing portfolios and/ or other unforeseen consequences,” Khattak continued.
In light of current scenario, Khattak, in his letter stated that the power company expects immediate resolution and earliest dividend remittance (Rs 975 million) to AOC through the authorised dealer, adding that a positive confirmation in this regard would be highly appreciated.
Copyright Business Recorder, 2024
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