KARACHI, April 21: Sponsors of Asia Board Industries Limited would buy-back shares of the company at Rs10 per share, from the minority shareholders.

KSE annouced that the company’s request for de-listing had been accepted by the bourse’s board and that the stock would stand de-listed from the KSE with effect from April 30, 2003.

The company had sought the shareholders’ approval at an extraordinary general meeting on January 27, at which the shareholders were asked to approve special resolution: “Resolved that the company be and is hereby delisted from the Karachi, Lahore and Islamabad Stock Exchanges and the shares of the company be bought back by the majority shareholders from the minority shareholders at a price of Rs10 per share as fixed by the Karachi Stock Exchange vide their letter No.NSE/C-559/7689 dated December 20, 2002.”

In the statement under section 160(1)(b) of the Companies Ordinance, 1984, the company had noted that it had applied to the KSE for voluntary delisting of shares of the company and buy-back of shares by the majority shareholders. It said that the basic purpose of a company was to raise money from the general public.

However, in the case of the company, the paid-up capital had been reduced to a very nominal amount due to brought forward accumulated losses and although the directors had inducted interest-free loan amounting to Rs20 million, there was liquidity problem.

The company said: “Under the circumstances, the plant and machinery requiring major repairs and replacement cannot be carried out.”

Hence the directors were of the opinion that there was no need to maintain the status of a listed company.

It said: “Rather it will be more appreciable to get it delisted voluntarily in order to avoid statutory requirements of listed companies and to save time and money of the company.”

The recent stock market quotation of the share in Asia Board Industries is Rs10; the company having a total of 1.86 million outstanding shares of Rs10 each.