KARACHI, Sept 9: The Crescot Mills Limited - an ailing textile spinning mills of the Crescent group - announced on Thursday that it has proposed to buy back shares of the company for Rs5 per share, subject to the approval of the Exchange.

The decision was made at the meeting of the Board of Directors on Wednesday which approved the voluntary de-listing of the company from the Karachi Stock Exchange, following the buyback of its ordinary stock.

The proposed buyback price is at 50 per cent discount to the par value of the share. The Crescot Mills stock is currently quoted at Rs8.40 on the defaulters' counter.

The company has been placed on the defaulters' counter under listing regulation 32(1)(b), which relates to the failure to declare dividend/bonus for five years from the date of last declaration.

The Karachi Stock Exchange would now discuss the buyback price with the sponsors and it has to be conceded that in most of such offers the Exchange has been able to broker excellent deals for the small shareholders.

Where managements of companies and the Exchange could not reach to a satisfactory price deal, there have been instances of withdrawal of such repurchase offers by companies.

Nineteen buyback offers of shares are currently listed on the KSE daily quotation. These include: Maqbool Company at Rs102; Pakistan Fisheries at Rs10; Syed Match Company Rs22.50; Elite Publishers Rs16; F.P. Textile Rs10; Lease Pak Limited Rs4; Star Textile Mills Rs60; Pioneer Cables Rs25; Alhamd Textile Rs42; Spencer & Co. (Pakistan) Rs200; Indus Jute Rs25; Elite Textile Rs15; Kotri Textile Rs15; Tritex Cotton Rs25; Zaman Textile Rs65; National Security Insurance Rs4.50; Polypropylene Products Rs29; Hamza Sugar Rs80 and the ghee making company - Sh. Fazal Rehman & Sons at Rs16 per share.