Selling off: KSE to auction Entitlement Certificate
This Includes 1.6 million shares of KSE Limited with face value of Rs10 each.
This Includes 1.6 million shares of KSE Limited with face value of Rs10 each. PHOTO: FILE
KARACHI:
The Karachi Stock Exchange (KSE) is planning to auction the Trading Right Entitlement Certificate (TREC). The auction also includes the shares of KSE Limited and the assignment of proceeds of KSEL shares that are currently held in the Central Depository Company (CDC)-blocked account, of three former TREC-holders on June 24.
According to KSE Chief Compliance Officer Abbas Mirza, the auction will result in the sale of three sets of assets, namely a TREC, 1.6 million shares of KSEL having face value of Rs10 each, and the assignment of proceeds of 2.4 million shares of KSEL that are to be sold later to strategic investors as part of the demutualisation process. The last component of the set of assets is currently held in a CDC-blocked account under the custody of KSEL.
Proceeds of the auction will be utilised for the settlement of registered and approved claims against the former TREC-holders.
In order to be eligible to participate in the bidding process for the purchase of these assets as a bundle, prospective buyers must be a private or public company having a minimum paid-up capital of Rs50 million. The reserve price for the bundle of assets is Rs42.5 million.
Published in The Express Tribune, June 19th, 2014.
The Karachi Stock Exchange (KSE) is planning to auction the Trading Right Entitlement Certificate (TREC). The auction also includes the shares of KSE Limited and the assignment of proceeds of KSEL shares that are currently held in the Central Depository Company (CDC)-blocked account, of three former TREC-holders on June 24.
According to KSE Chief Compliance Officer Abbas Mirza, the auction will result in the sale of three sets of assets, namely a TREC, 1.6 million shares of KSEL having face value of Rs10 each, and the assignment of proceeds of 2.4 million shares of KSEL that are to be sold later to strategic investors as part of the demutualisation process. The last component of the set of assets is currently held in a CDC-blocked account under the custody of KSEL.
Proceeds of the auction will be utilised for the settlement of registered and approved claims against the former TREC-holders.
In order to be eligible to participate in the bidding process for the purchase of these assets as a bundle, prospective buyers must be a private or public company having a minimum paid-up capital of Rs50 million. The reserve price for the bundle of assets is Rs42.5 million.
Published in The Express Tribune, June 19th, 2014.