TRG Pakistan Acquisition: Greentree Extends Offer Period to April 25
The acquisition of TRG Pakistan by Greentree Holdings has been delayed due to legal challenges, but the extension of the acceptance period provides investors with more time to consider the offer, which could have significant implications for the company's future direction and control.
The acceptance period for the acquisition of TRG Pakistan Limited by Greentree Holdings Limited has been extended for the third time, with the new deadline set for April 25, 2025, aiming to acquire a 35.147% stake in the company.
The extension, announced by AKD Securities, allows investors more time to consider Greentree's public offer, which was initially set to end on April 4 and was previously extended to April 15. The takeover bid, valued at Rs75 per share, a 25% premium to the pre-tender price, aims to gain managerial control of TRG Pakistan, a company with international interests in technology ventures.
The Securities and Exchange Commission of Pakistan (SECP) is supervising the process to ensure transparency and investor protection. However, the tender offer has been delayed due to legal challenges, including a petition filed by former CEO Zia Chishti and a brokerage house, which was later dismissed by the Islamabad High Court. An ex-parte status quo order issued by the Sindh High Court has also paused the transaction, preventing approximately 10,000 investors from realizing potential gains and holding up $50 million in foreign exchange inflows.
Industry observers believe that the legal challenges are linked to an ongoing contest for control of TRG Pakistan between Chishti and the JS Group, and the current board and management. If the tender goes through, Greentree could secure a majority stake in the company, giving it significant control over TRG Pakistan's operations and future direction.
The extension of the acceptance period provides investors with more time to consider Greentree's offer, and the outcome of the tender will be closely watched by the market, as it has significant implications for the future of TRG Pakistan and its stakeholders.