LAHORE: Haroon Ahmed Khan, chief executive officer (CEO) of Waves Singer Pakistan, has bought the bankrupt Samin Textiles to turn it around into a large retail company with a strong e-commerce platform through an initial injection of Rs250 million.
According to a bourse filing, Samin Textiles, which was shut down in August 2018, has requested the Pakistan Stock Exchange (PSX) to help it get its shares unfrozen by the CDC for their transfer to Mr Khan, who also owns more than 38pc holding in WSPL, for the execution of the company’s revival plan.
The company’s shareholders had disposed of its assets — land, building, plant and machinery — after it declared bankruptcy with the stock exchange putting it on the defaulters’ counter and the Central Depository Company (CDC) blocking its shares till its existing/new management submitted a revival plan.
“This deal shows a new emerging trend in Pakistan’s stock market as Samin Textiles — which the prospective investor intends to rename according to its new line of business once the regulatory approvals come through — is going to be first listed retail firm in the country,” Ali Wahab, an investment banker based out of the UAE, told Dawn by telephone.
The revival plan accompanying the bourse filing shows the new investor plans to create a nationwide network of retail outlets, initially selling home appliances and later diversifying into food, FMCG, beauty, home decor, furniture, and so on.
The home appliances sales revenues from the domestic market are assumed in the revival plan to grow by 4.6pc annually from this year’s projected volumes of $1.2bn.
The revived company will start business through the establishment of 10 outlets within 6-9 months of the completion of transfer of ownership, in Punjab.
Published in Dawn, April 23rd, 2021