TRG Pakistan: Court Ruling Allows Greentree Holdings' Tender Offer to Resume
With the court's ruling, the tender offer for TRG Pakistan is set to resume, allowing shareholders to sell their shares at the offered price of Rs75 per share. The outcome of the offer will be closely watched by market participants, as it is expected to have a significant impact on the company's strategy and future direction.
The Islamabad High Court has dismissed a writ petition challenging Greentree Holdings Limited's public tender offer for TRG Pakistan Limited, paving the way for the offer to resume with a revised timeline. The acceptance period for shareholders will now run from March 25 to April 4, 2025, following the court's decision to vacate a stay order issued on February 27, 2025.
The public offer, which was initially announced on January 15, 2025, had been temporarily halted due to the legal proceedings. Greentree Holdings, an international holding company, has offered to purchase an additional 35.1% stakes of TRG Pakistan at Rs75 per share, taking its total shareholding to around 64.8%. The tender offer aims to share liquidity of over $52 million earned through selling stakes in Ibex, a US-listed company.
TRG Pakistan's share price is expected to fall to Rs64-68 per share after Greentree Holdings' tender offer, according to KTrade Research. The research firm estimated the company's post-tender net asset value (NAV) at Rs64-68 per share, considering remaining cash reserves and marketability of illiquid assets. The tender offer is seen as a good opportunity for exit for investors who do not have the patience to wait for the resolution of legal issues.
The outcome of the tender offer is expected to have a significant impact on TRG Pakistan's strategy, and market participants will be closely watching the developments. The company has generated excellent returns from its portfolio, but has missed opportunities due to declines in SaaS industry valuations and over-leverage. The revised timeline for the tender offer will provide clarity on the future direction of the company.