Pakistan Int’l Container Terminal: Right issue may be the outcome of meeting
Capital needed to fund new dirty bulk terminal: report.
KARACHI:
Pakistan International Container Terminal (PICT) announced an emergent board meeting scheduled for July 11 to consider declaration of any entitlement to the shareholders. Given the company’s liquidity situation and its future growth plans, there is only a slim chance of a cash dividend announcement, however, a rights issue seems more of a possibility, according to a BMA Capital research note.
PICT’s latest financials of March showed that the company has Rs1.01 billion in cash and bank balances while its current portion of long-term loans and accrued interest on long-term loans stands at Rs512 million and Rs50 million, respectively. The company still has long-term loans of Rs2.38 billion on its balance sheet which will be repaid over the next seven years.
With all these dues, PICT has grand plans regarding its dirty bulk terminal which will be constructed at Port Qasim for $142 million. The company will need ample cash for financing the project that enters into construction phase, says the note. In order to raise capital for the new project, we expect PICT to announce a rights issue in the meeting, adds the note.
Published in The Express Tribune, July 6th, 2011.
Pakistan International Container Terminal (PICT) announced an emergent board meeting scheduled for July 11 to consider declaration of any entitlement to the shareholders. Given the company’s liquidity situation and its future growth plans, there is only a slim chance of a cash dividend announcement, however, a rights issue seems more of a possibility, according to a BMA Capital research note.
PICT’s latest financials of March showed that the company has Rs1.01 billion in cash and bank balances while its current portion of long-term loans and accrued interest on long-term loans stands at Rs512 million and Rs50 million, respectively. The company still has long-term loans of Rs2.38 billion on its balance sheet which will be repaid over the next seven years.
With all these dues, PICT has grand plans regarding its dirty bulk terminal which will be constructed at Port Qasim for $142 million. The company will need ample cash for financing the project that enters into construction phase, says the note. In order to raise capital for the new project, we expect PICT to announce a rights issue in the meeting, adds the note.
Published in The Express Tribune, July 6th, 2011.