Engro Corporation Limited (PSX: ENGRO), has announced to buy back up to 70 million of its shares worth Rs. 18.8 billion.
According to a stock filing, the top conglomerate will purchase up to 70,000,000 issued and paid-up ordinary shares having a face value of Rs. 10 per share each.
The buyback will occur between February 3rd and July 25th, 2023 at prevailing market prices.
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According to JS Global, Engro Corp has a market cap of Rs. 144 billion (US$ 690 million). The purchase of its shares in accordance with Listed Companies Regulations, 2019 at the current prices will cost the company Rs. 18.8 billion (US$ 84 million).
Outstanding shares of the company will decline to 506 million post-transaction from the current holding of 576 million.
Free Float With Associated Companies
Current Shareholding (million shares) 316.9 229.5
Current Shareholding 55% 40%
Shareholding post-transaction 49% 45%.
The filing said an Extra-ordinary General Meeting of the Company would be held on Thursday, January 26, 2023, for approval of the purchase. Subsequently, the purchase of shares shall be made in cash and shall be out of the distributable profits as required under Section 88(8) of the Companies Act, 2017.
The purchase/buy-back of the Company’s issued ordinary shares will improve the earnings per share of the Company. Further, it will provide an opportunity to exit to those members who wish to liquidate their investments.
