PIBT to increase paid-up share capital by issue of 16.945 percent right shares

The board of directors of Pakistan International Bulk Terminal (PIBT) has decided to increase the paid-up share capital of the company from Rs 12.706 billion to Rs 14.859 billion by issue of 16.945 percent right shares ie 16.945 right shares for every 100 existing ordinary shares. According to material information sent to Pakistan Stock Exchange (PSX) on Thursday, the right shares to be offered at a price of Rs 10 per share ie at par to the members whose names will appear on the members' register on the book closure date (Right Issue). These right shares will rank pari passu with the existing shares in all respects.
It has also been decided by the board of directors that share transfer books of the company to determine the members' entitlement to the Right Shares will be closed from January 10, 2017 to January 17, 2017 (both days inclusive). The members whose names appear in the Register of the members at the close of business on January 17, 2017 shall be entitled to the receipt of Latter of Rights or credit of unpaid rights in their sub-account with the Central Depository Company of Pakistan Limited (CDC), as the case may be. The board of directors of the company has also reviewed the progress of the project. The meeting was told that the major civil works activities for the project conducted by the EPC Contractor China Harbour Engineering Company have been completed. All project equipments have arrived at the site. Currently, works on punch list items, interface adjustments, installation, testing and commissioning are being performed at the site. Considering the current progress, it is expected that the project will be commissioned in the second quarter of CY17.
The management is actively monitoring and pursuing the incremental costs of approximately $31 million for the project. These incremental costs have been accrued majorly on account of duties and taxes at import stage for various project equipment and exchange rate fluctuations. The company has filed a petition at the High Court of Sindh for the non-applicability of the duties and taxes. To finance these incremental costs the board of directors of the company has approved the issue of equity by way of right shares in the ratio of 16.945 ordinary shares for every 100 ordinary shares held (16.945 percent) amounting to Rs 2,153,166,060 and the sponsors' have consented to provide a debt amounting to up to Rs 1.077 billion to the company at KIBOR plus 200bps (a rate, 100bps lower than the existing local currency borrowing cost of the company) to the company. This consent has been extended by the sponsors' in accordance with the sponsor support stipulated in the existing debt arrangements with the local and international lenders. The board of directors of the company has approved the above debt arrangement at the terms and conditions provided for the financing documents.