TRG Pakistan surges 15.5% as court decisions propel corporate moves

TRG Pakistan Limited experienced a significant surge in its share price, climbing 15.5% over six sessions to close at PKR 68.53 per share, up from PKR 59.34 on March 12.

The rally began before two consecutive positive developments, hinting that market insiders were anticipating developments on the company's horizon.

On Thursday, TRG Pakistan notified the Pakistan Stock Exchange (PSX) of the dismissal of a writ petition that had temporarily halted the public tender offer by Greentree Holdings Limited (GHL).

The company confirmed the resumption of the public offer following the Islamabad High Court's (IHC) final order issued on March 18, 2025. The court ruled the petition "not maintainable," effectively lifting the stay order that had restrained GHL from purchasing shares.

The legal disputes surrounding the tender offer began when Zia Chishti, TRG Pakistan’s former CEO, filed a motion in U.S. arbitration proceedings on January 28, 2025. Mr. Chishti sought to block GHL's tender offer and expedite the company's board elections. However, a U.S. arbitrator denied his motion on February 28, 2025.

Additionally, a writ petition filed by Abid Hussain, a TRG director and CEO of Sign Source Limited, alongside other directors and shareholders, sought to prevent GHL's public offer. An initial stay order was granted but later dismissed after an extensive hearing on March 12.

Greentree Holdings Limited, a wholly-owned subsidiary of The Resource Group International Limited, already holds 28.6% shares in TRG Pakistan and made a public offer to acquire up to 35.147% of the company. Assuming full take up of the tender, the shareholding of Greentree Holdings would increase to approximately 65% of TRG Pakistan.

Meanwhile, The Telegraph Media Group in the U.K. issued an apology to Zia Chishti and agreed to pay substantial damages in a libel settlement. The settlement followed reports published between 2021 and 2023 regarding allegations of sexual misconduct against Mr. Chishti by a former employee. He had consistently denied the claims and pursued legal action against the publication.

Financially, TRG Pakistan reported a net profit of PKR 4.3 billion for the six months ending December 31, 2024, with quarterly profits of PKR 1.9 billion, reversing a PKR 1.5 billion loss from the same quarter the previous year. Earnings per share stood at PKR 7.9 for the half-year period and PKR 3.5 for the quarter.

Company management remains committed to maximizing shareholder value by enhancing and monetizing its portfolio assets strategically.