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Habib Sugar Mills Announces Purchase of 15 Million Company Shares

Habib Sugar Mills Limited (HABSM) plans to buy back 15 million shares, constituting 10% of its current shares. The company, engaged in manufacturing refined sugar, ethanol, and more, aims to seek approval from its members for this strategic move.

Habib Sugar Mills Announces Purchase of 15 Million Company Shares

Habib Sugar Mills Limited (HABSM) has decided to buy back some of its shares. They want to purchase up to 15 million shares of the company, which they announced to the Pakistan Stock Exchange on Tuesday.

Key Features of Share Buyback Proposal:

Purpose of Purchase  Cancellation of Shares
Mode of Purchase  Through PSX (Pakistan Stock Exchange)
Indicative Number of Shares  Up to 15,000,000 shares with a face value of Rs. 5 per share
Indicative Percentage  10% of the total paid-up shares of the company
Purchase Price per Share  Shares will be bought at the spot/current price acceptable to the company during the purchase period
Purchase Period  From February 2, 2024, to July 30, 2024, or until the purchase is completed
Source of Funds  Purchases will be made from distributable profits, utilizing internally generated cash flows to ensure funds availability
Justification for Buyback  The buyback aims to positively impact the company’s financial position, improving EPS and break-up value. It also provides an exit opportunity for shareholders wishing to liquidate their investments.

The decision was made by the Board of Directors of Habib Sugar Mills Limited. They plan to recommend this buyback to the company’s members for approval. The buyback would involve up to 15 million ordinary shares, which is 10% of the current total ordinary shares. Each of these shares has a face value of PKR 5 (Pak Rupees Five).

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Habib Sugar Mills Limited is a company that makes and sells refined sugar, ethanol, liquefied carbon dioxide (CO2), and household textiles. They also provide storage space for large quantities and trade various commodities.

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