KARACHI: TRG Pakistan Ltd said on Monday it will let its portion of the liquid assets — to be received from its associate TRG International — be parked in a special purpose vehicle (SPV) to ensure “value, benefit and liquidity” for shareholders.

The TRG International-owned SPV will purchase from time to time the shares of TRG Pakistan from the stock market, it said in a regulatory filing.

TRG Pakistan holds 45 per cent shares of TRG International, which recently sold one of its businesses, E-Telequote.

This has resulted in TRG Pakistan getting an inflow of dollars in proportion to its shareholding in TRG International.

The locally listed company told investors on Dec 10 that its US-based associate approved the allocation of liquid assets to shareholders that would result in an inflow of about $120 million.

TRG Pakistan’s portion of the liquid assets includes $10m in deferred cash. In addition, the company will also receive 5.4m shares of its listed portfolio company, Ibex Ltd.

According to Arif Habib Ltd, TRG Pakistan could either directly receive a share in TRG International’s liquid assets (cash or a certain number of shares of Ibex Ltd) by means of full or partial redemption or continue with its investment in TRG International.

Its board decided to go for the latter, which means continuing to “work towards further maximising value and capital returns of its proceeds for the company and its shareholders”.

The share price of TRG Pakistan Ltd increased 7.5pc to Rs114.41 apiece on Monday.

Published in Dawn, December 21st, 2021