The purchase will improve the Earnings per share subsequent to the purchase and will also result in an improved dividend. Further, it will provide an opportunity for exit to those members who wish to liquidate their investment.
The transaction will improve earnings per share, future dividends, and the breakup value of the company’s share. According to the stock filing, the board of directors has decided to recommend to the members for their approval by passing a special resolution, the purchase or buyback of its issued ordinary share of the company of the face value of Rs. 10 each.
In this regard, the board of directors has decided to convene an extraordinary general meeting of the company on May 10, 2022, in Lahore to seek members’ approval of the proposal to purchase shares by passing a special resolution.
According to the schedule, the shares will be purchased from May 18 to August 15, 2022. The deadline can be extended till the purchase of shares is completed.