KARACHI, Aug 15: Majority stakeholders in Callmate Telips have captured four of the seven seats on the company’s board of directors.

Syed Usman Haroon, one of the incoming directors, said it was not akin to takeover of the company. But since majority equity holders had naturally greater interest in the growth and progress of the company, they had decided to reorganise the board. Some of the groups that hold larger number of shares in the company include Orix; Dawood and FNE.

The sitting management had fewer than 50 per cent shares, which was why they gave way to new outside members on the board.

Those who relinquished the charge following the meeting of the board held on Aug 9 included: General (retd) Safdar Ali Khan; Mr Asif Ali; Mr Imran Mahmood and Mr Hasan Jamil Ansari. The following were appointed in their place: Mr Ali A Malik; Mr Saleem Shehzada; Syed Usman Haroon and Mr Shujaat Ali Qarni.

The change had been notified by the company through a notice at the KSE. The story of CTTL — the long distance and international (LDI) private operator in Pakistan -- makes a case of great corporate interest.

In the last 52 weeks, the market price of share in the company had touched as high as Rs103.70 with major rise noted in November last year when the stock started the climb from Rs49.40, in a string of 11 upper circuits in a row. But even before that the price of the scrip had dipped at an equally high speed. The last 60 days and 52 weeks high and low of stock value is noted at Rs56.85 and Rs41.60.

The principal reason for the price in the company share to have soared over Rs100 was rumours in the market that an Arab-based group was interested in acquiring major stake at US$2/share (Rs122/share). That was not to be. And the reason for the price of the share to have suffered a steep drop was the controversy, which developed into a bitter row between the company and its statutory auditors over revenue recognition policy.

Allegations were traded between the company and the auditors in full view of the public. Shareholders subsequently replaced auditors. But the SECP raised objections on the appointment process of new auditors.

The delayed accounts of the company had shown net income at Rs723mn (diluted EPS of Rs11.06) for FY06 as compared to Rs432mn (diluted EPS of Rs6.61) in FY05. The earnings were based on dispatch of cards basis. The company had also announced cash dividend at Rs3 per share and bonus shares at 47.5pc (according to KSE sheet of daily quotations) along with the full-year results.

A sitting director who asked not to be named said the new board which comprised experts in telecom; administration and other critical areas, would endeavour to put the company back on the rails and settle issues of qualifications in the balance sheet as well as pending matters with the SECP.

He said that equity injection would be required to make progress on new plans.

He reiterated that several parties, including PTCL and a Dubai based investor, had shown interest in taking stake in the company.

Annual General Meeting (AGM) for the year ended June 30, 2006, is scheduled to be held on Thursday, Aug 16, when the new board is likely to discuss plans and chart out a course for the future.