Islamabad February 26 2025: Islamabad High Court has stopped Greentree Holding Limited from acquiring any shares in furtherance of the Public Announcement of offer made on 15th January, 2025.
Earlier, Greentree holding announced to acquire up to 191 million shares constituting 35.15 percent of TRG Pakistan Limited at a price of PKR 75 per share.
The petition was filed by Securities and Exchange Commission of Pakistan & Competition Commission of Pakistan to ensure that the funds sent to Greentree Holdings Limited by TRGP and TRGI are not used to finance, directly or indirectly, the purchase of shares by Greentree pursuant to the Public Announcement of Offer dated 15th January, 2025.
The learned counsel for the petitioners inter alia submits that the petitioners have submitted complaints before the SECP regarding the acquisition of shares of TRGP by its subsidiary Greentree from funds beneficially owned by TGRP in violation of Section 86 of the Companies Act, 2017, therefore, it is imperative that the SECP should direct or stop the subject acquisition of TGRP shares being regulator of the securities market in Pakistan; that the official respondents are under a duty to ensure that the law relating to acquisition of shares is complied with as non-compliance is against the public interest and to the detriment of both the petitioners and the public shareholders and if the public offer is allowed to proceed, it may create third party rights that may be incapable of reversal; and that the acquisition of additional shares in TRG Pakistan Limited will make majority shareholder in TRG Pakistan Limited placing it in a dominant market position and such acquisition violates Section 3 of the Companies Act.
