Mari Pe­tro­leum dishes Rs9.718b ru­pees to govt

Pakistan Observer - - ECONOMY WATCH -

ISLAMABAD—Based on ap­proval from SECP, Board of Di­rec­tors, Gov­ern­ment of Pak­istan (GoP) and share­hold­ers in the Ex­tra­or­di­nary Gen­eral Meet­ing (EOGM) held on June 23, 2016, the Mari Pe­tro­leum Com­pany Limited (MPCL) has re­deemed pref­er­ence shares held by GoP/oth­ers along with profit for the ap­pli­ca­ble pe­riod and an amount of Rs9.718 bil­lion was paid to GoP on June 24, 2016 on ac­count of re­demp­tion of pref­er­ence shares. It is high­lighted that the MPCL has al­ready re­deemed the pref­er­ence shares is­sued to the mi­nor­ity share­hold­ers of the Com­pany.

Early re­demp­tion of pref­er­ence shares held by GoP and mi­nor­ity share­hold­ers is a great achieve­ment on part of the Com­pany. With ef­fi­cient man­age­ment of cash flows, early re­demp­tion of pref­er­ence shares will re­sult in cost sav­ings for the Com­pany, whereas, GoP has ben­e­fit­ted in the shape of lump sum pay­ment of Rs9.718 bil­lion.

Ef­fec­tive July 01, 2014, the Eco­nomic Co­or­di­na­tion Com­mit­tee (ECC) ap­proved dis­man­tling of Mari GPA with the con­di­tion that the un-dis­tributable bal­ance as on June 30, 2014 amount­ing to Rs 9.67 bil­lion would be sur­ren­dered to GoP and mi­nor­ity share­hold­ers in the form of pref­er­ence shares as “quid pro quo” for dis­man­tling of Mari GPA.

In ad­di­tion, Rs920 mil­lion provided for Mari Seis­mic Unit was also con­verted into pref­er­ence share cap­i­tal fa­vor­ing GoP. These shares car­ried a profit rate of one year KIBOR + 3% and were to be re­deemed within ten years.—PR

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