Lahore September 7 2023: The Board of Directors of Maple Leaf Cement Factory Limited (MLCF) recommended to the shareholders towards purchase/buyback upto a maximum of 100 million shares, according to company filing to the exchange.
"The Board recommended to the shareholders towards purchase/buy-back upto a maximum of 100 million issued ordinary shares of the face value of Rs. I0/- (Rupees ten) each by the Company at the spot / current share price under Section 88 of the Companies Act, 2017 read with the Listed Companies (Buy-Back of Shares) Regulations, 2019" states the filing.
Shares will be purchased at spot rate from Pakistan Stock Exchange from October 27, 2023 to April 15, 2024 or if the buy-back by the Company is completed before April 15, 2024, the purchase period shall end on that date.
The purchase/buy-back will be made in cash using distributable profits of the company.
The reduced capital would consolidate equity which will improve earnings per share, future dividends and break-up value of the Company's share subsequent to the purchase of shares. It will also provide an opportunity of exit to those members who wish to liquidate their investments at a reasonable price.
The purchase will have positive effect on the financial position of the Company as it will improve EPS, future dividends and break-up value of the Company, share.