KARACHI: The new owners of majority equity in Singer Pakistan Ltd propose to acquire up to 8.976 million shares of the total issued share capital of the company through a public offer at Rs29.79 per share, which would raise total cash consideration of Rs267 million.

The market price of the Singer stock is Rs33.87 ex-right.

In Jan 2016, pursuant to the divestment of Singer (Pakistan) by the parent based in Amsterdam, the Netherlands -- the Poseidon Synergies (PVT) Ltd; Haroon Ahmed Khan and Mrs Nighat Haroon Khan collectively acquired 13m shares of Singer Pakistan, representing 28.65pc of the present paid-up and issued share capital of the company. Moreover, the acquirers shall, pursuant to the Sale Purchase Agreement (SPA), would acquire 9.67m shares, representing 21.30pc of the total issued shares of Singer at price of Rs24 per share against cash consideration. The acquirers were stated to be willing to increase their shareholding in the target company in order to gain control and to increase the shareholders’ value. The present public offer by the new owners has been made pursuant to the Securities Act 2015 and the listed companies (substantial acquisition of voting shares and takeovers) regulations, 2008.

Earlier in Jan this year, the company had explained in a filing on the stock exchange that the foreign parent’s divestment of equity in the company was a policy decision of Singer Asia Limited, indicating that its departure was not Pakistan-specific.

Going by the balance sheet for the nine months ended Sept 30, 2015, Singer Pakistan was worth Rs3bn. The company was listed at the stock exchanges in 1985.

Published in Dawn, July 26th, 2016

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.