The Karachi Electric Supply Corporation (KESC) approved the issuance of redeemable preference shares to be offered as right shares to its shareholders.
The KESC holds an extraordinary general meeting of its shareholders on Thursday, chaired by Khusrow Khwaja resolved that Redeemable Preference Shares be offered as right shares to the ordinary share-holders.
The shares having cumulative value of Rs 6,000 million would be divided into over 1.7 billion redeemable preference shares of Rs 3.5 each.
Every shareholder may avail 13.02 percent of his shareholding. The cumulative preferential share dividend should be worked out at the rate of 3 percent per annum. Shan A. Ashary, director, explained that it is being done pursuant to the requirement of an agreement executed on November 14, 2005 between the Government of Pakistan and the new investor under which KESC Power Ltd, the Government of Pakistan and others will subscribe 73 percent, 26 percent and 1 percent redeemable preference shares respectively.
He assured that the new management would endeavour to make the Corporation a profitable organisation enabling dividends to ordinary shareholders.
KESC Chief Executive Officer Frank Scherschmidt also made a detailed multi-media presentation to the shareholders, and explained that the utility first needs to win over the trust of the consumers with better performance for the benefit of shareholders.
Outlining the mission, he said: "We would generate transmit and distribute power and provide reliable supply, improve safety and quality of staff work place for quality service. We will also ensure growth for the benefit of shareholders."
Frank Scherschmidt said the working of KESC has been moving in a circle of bad service and bad supply resulting into lost trust and bad payments by the consumers.
"We want to change it into a circle of better service and supply thereby winning the confidence and satisfaction of our valued customers which, in turn, would fetch better payment from the customers", he added.
KESC Chief Financial Officer Muhammad Asghar informed the shareholders that SAP electronic programming is being introduced to bring in efficiency in work. Besides other, cost-effective measures are also being taken to curtail the expenditure of the KESC.
M. Khusrow Khwaja replied to various queries of the shareholders, including Afif Alvi, Mazhar Choudhry, Farooq, Siddiq Shujaat, and Zaidi.