The country will receive an inflow of $500 million during next few months, as Unilever Overseas Holding Limited has agreed to buy-back Unilever Pakistan''''s shares at a price of Rs 15,000 per share recommended by the special committee of Karachi Stock Exchange (KSE). Presently, paid up shares of Unilever Pakistan stood at some 13.29 million shares.
Out of these, some 75.05 percent of the total issued shares in Unilever Pakistan are already in possession of Unilever Overseas Holdings Limited. With current move, Unilever Overseas Holdings Limited is going to mop up remaining 24.95 percent, which are approximately 3.3 million shares, held by the public.
In case all shareholders agreed to sell their holding to Unilever Overseas Holding Limited, this transaction will generate a fresh liquidity of some $500 million in the country''''s depleting foreign exchange reserves, as the value of 3.3 million shares held by public is over Rs 49 billion.
This will a good news for the economic managers, as the country''''s foreign exchange reserves are gradually depleting due to rising debt payments. The country''''s foreign reserves have decline to $12.37 billion as on March 22, 2013. On November 27, 2012, Unilever Pakistan announced that the UK parent intended to buy-back all shares in order to take its stake to 100 percent. Seeking the voluntary delisting of the share of the company from the Karachi, Lahore, and Islamabad stock exchange in accordance with the voluntary de-listing provisions, the company proposed purchase price of Rs 9,700 per ordinary share.
However, a committee constituted by the board of directors of the KSE to consider the buy-back, after deliberating the relevant aspects under the relevant listing regulations recommended to fix the minimum purchase price at Rs 15,000 per share against the offer of the sponsors of Rs 9,700 per share.
On the committee''''s recommendation, on March 26, 2013 Karachi Stock Exchange announced to fix the buy-back price of shares held by the public in Unilever Pakistan at Rs 15,000 per share. Under the Listing Regulation No 30-D (IV), the Sponsors of Unilever Pakistan Limited were required to convey their acceptance/refusal to the purchase price approved by the exchange within seven days of the date of this announcement.
Accordingly on Tuesday, Unilever Overseas Holdings Limited convey its acceptance of the purchase price of Rs 15,000 recommended by the special committee and fixed by the KSE for buy-back of shares held by the public in Unilever Pakistan. Unilever Pakistan was listed at the stock exchanges in 1980 at the face value of Rs 50 per share and it is the most expensive stock on the country''''s equity market.
Sources said that Unilever Pakistan is also going to convene an extraordinary general meeting at the end of this month to seek shareholders'''' approval through a special resolution for the voluntary delisting of the shares of Unilever Pakistan Limited. "The extraordinary general meeting is likely to held on April 26, 2013 while, buy-back offer of Unilever Overseas Holdings Limited will be remained opened for next two months," they added.