TRG Pakistan Limited management listed in Pakistan Stock Exchange (PSX) in its investors briefing session has discussed possibility of bumper dividend or buy back of shares from proceeds of divestment of its stake in eTelequote Limited. The Resource Group International Limited (TRGIL) holds 70% of eTelequote and TRG Pakistan is holding 45.3 percent in TRGIL.
It is worth mentioning to note that eTelequote Limited is valued at USD600 million enterprise value for acquisition purpose and its equity is valued at USD450 million after considering payment of debt. After consideration transaction cost and other matters TRGIL would receive consideration of USD309 million said in a notice filed to Pakistan Stock Exchange (PSX) by TRG Pakistan Limited.
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In a notice filed to PSX it is stated that TRG Pakistan’s prorated stake at closing, excluding any earn-out and prior to net debt adjustment at TRGIL, will be approximately Rupees 21.5 billion, and in today’s meeting Zia has said that TRG Pakistan would have right to USD105mn in amount received from TRGIL from eTelequote divestment. TRG Pakistan would then decided in a tax efficient manner whether to give dividend or buy back TRG Pakistan Limited shares.
Zia Chishti- CEO TRG Pakistan Limited
TRG Management Pakistan CEO Zia Chishti during the briefing has also said that Afiniti IPO can be expected in 2022 but not before that due to some technicial issues. Afiniti revenue for this year is expected at USD237 million and company is showing at 75 percent CAGR as per management. Afinit was valued at USD2.1 billion in last round of financing and its current debt stands at USD335 million.
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Afiniti is a unique company and have very few comparable Zia told to investors in briefing session. Investors can take proxy of C3.ai and Palantir for valuation guidance of Afiniti. C3.ai and Palantir are currently trading at 35 and 41x revenue multiple on 2021 forecast and 25x and 32x on 2022 revenue forecast. Zia has also said that their is no further investment plan from TRGIL these funds would be used to reward investors that trusted us from last 15 years.
