No more public company: Pakistan Telephone Cables plans delisting
Company losses increase, no dividend expected in near term.
KARACHI:
Pakistan Telephone Cables Limited’s major shareholders have decided to buy back shares of the company and make it no more public, hence delisting of the company from the country’s stock exchanges.
The company is suffering from losses and is not in a position to earn profit in its business operations, the company management said in a notice to the Karachi Stock Exchange on Thursday.
The company losses increased to Rs379 million in 2010 against Rs210 million in the preceding year. Due to the losses, current liabilities exceed current assets by Rs123.8 million.
“Future prospects of the industry remain bleak as telecommunication links through conventional copper cables have switched to other alternatives such as wireless local loops, optical fibres and mobile phones,” said Company Secretary Muhammad Azhar Jamali in the notice.
The company also does not see itself paying any dividend in the future due to the accumulated losses.
Sponsors and associates currently hold 92.12 per cent shares of the company while the general public holds about 7.88 per cent.
The sponsors have agreed to purchase shares at Rs3.45, which is the highest benchmark price based on methods prescribed by the stock exchange. The price at the stock exchange was Rs2.59 on April 29.
Published in The Express Tribune, May 6th, 2011.
Pakistan Telephone Cables Limited’s major shareholders have decided to buy back shares of the company and make it no more public, hence delisting of the company from the country’s stock exchanges.
The company is suffering from losses and is not in a position to earn profit in its business operations, the company management said in a notice to the Karachi Stock Exchange on Thursday.
The company losses increased to Rs379 million in 2010 against Rs210 million in the preceding year. Due to the losses, current liabilities exceed current assets by Rs123.8 million.
“Future prospects of the industry remain bleak as telecommunication links through conventional copper cables have switched to other alternatives such as wireless local loops, optical fibres and mobile phones,” said Company Secretary Muhammad Azhar Jamali in the notice.
The company also does not see itself paying any dividend in the future due to the accumulated losses.
Sponsors and associates currently hold 92.12 per cent shares of the company while the general public holds about 7.88 per cent.
The sponsors have agreed to purchase shares at Rs3.45, which is the highest benchmark price based on methods prescribed by the stock exchange. The price at the stock exchange was Rs2.59 on April 29.
Published in The Express Tribune, May 6th, 2011.