KARACHI: A Karachi-based private company engaged in the construction of large-scale infrastructure projects submitted on Monday its public announcement of intention to buy a majority shareholding in Baluchistan Wheels Ltd, an auto-part maker listed on the Pakistan Stock Exchange (PSX).

RMS Ltd aims to acquire up to 10.9 million shares constituting 81.8 per cent shareholding in the listed firm through a combination of a public offer and share purchase agreements with the sponsors of Baluchistan Wheels Ltd, said Arif Habib Ltd, which serves as manager to the offer on behalf of the acquirer.

The acquirer intends to buy up to 63.5pc shareholding through share purchase agreements in the first leg of the acquisition. The latter part of the transaction will consist of the acquirer floating a public offer at the same or higher rate for half of the remaining shareholding that’s controlled by the general public, public-sector companies, banks and mutual funds.

RMS Ltd calls itself a “traditional construction company” that builds highways, bridges and dams. Its CEO, Zeeshan Ali, controls 70pc ownership while two other shareholders own 20pc and 10pc shareholding each in RMS Ltd.

The target company makes automotive wheel rims for trucks, buses, tractors, cars and mini commercial vehicles. Its share price shot up 7.5pc on Monday to Rs93.48 apiece. At the going rate, a stake of 81.8pc in the auto-auto-part maker amounts to a little over Rs1 billion.

In the first nine months of 2022-23, the company posted a net profit of Rs105.9m, down 35pc from a year ago.

Published in Dawn, August 8th, 2023