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business Wednesday, 3 April, 2013

KARACHI

KSE to lose $29.9m equity as Unilever opts for buyback

ISMAIL DILAWAR

T

HE Karachi Stock Exchange (KSE) is going to lose listed shares of over Rs 2.99 billion or $ 29.91 million as the Unilever Overseas Holdings, the parent company of Unilever Pakistan Limited, has agreed to buy back ordinary shares of the food giant at Rs 15,000 per share. According to market sources, the Unilever Overseas Holdings had a couple of months back decided to go for voluntary delisting from the KSE of the Unilever Pakistan. The proposed delisting was to be done through the buyback of some 199,400 ordinary shares of the company. The company, in an earlier letter had proposed Rs 9,700 as per share price of the Unilever Pakistan. The sources, however, said the proposed buyback was to be evaluated by the KSE Board of Directors. So a special committee of the KSE did not agree to the proposed Rs 9,700 price for the buyback. A special committee of the KSE, in its March 26 meeting, proposed that the shares of Unilever Pakistan be de-listed at Rs 15,000 per share. The price was disagreed by the Unilever management which, the sources said, visited and held a special meeting with the KSE committee last Saturday (March 30), off day for the stocks market. The company management, the sources

Three month gas load management plan underway ISLAMABAD INP

said, had then agreed to pay Rs 13,200 to the Unilever stakeholders, but the proposal again faced a deadlock. Eventually, the KSE body had set a deadline up to 5pm of to March 2 (Tuesday) for the company to decide the disputed rate. Tuesday saw the Unilever Overseas Holdings agreeing to Rs 15,000 for each of the company’s share. “Unilever Overseas Holdings Limited conveys its acceptance of the purchase price of Rs 15,000 per share recommended by the Special Committee and fixed by the Exchange,” Amar Naseer, an attorney of the

London-based Unilever Overseas Holdings, informed the managing director of the KSE through a letter Tuesday. Referring to KSE’s letters of March 26 and April 1, which were issued after discussions with the KSE’s special committee, the Unilever agreed to the quantum of shares to be purchased as determined by the regulator under Listing Regulation No. 30-A(ii). The company also has asked the Unilever Pakistan to convene an Extraordinary General Meeting as early as possible to seek the shareholders’ approval through

Marginal domestic growth puts cement industry in a fix KARACHI STAFF REPORT

Ministry of Petroleum and Natural Resources is preparing a three month emergency gas load management plan to meet the shortfall. Well informed sources said that under the plan, priority would be given to domestic consumers followed by commercial, power, fertilizer, cement, captive and CNG. They further said that different options are being considered and the priority list could be changed. They said that domestic consumers would remain the first priority and the power sector would be the second and last priority. They said that the caretaker government would not hesitate to take decisions which were avoided by the previous government. The sources said that the caretaker government is keen to provide maximum relief to the people from load shedding during the summer months and would go all out to supply gas to the power plants instead of spending huge foreign exchange on imported fuel. Reports said that Dr Asim Hussain, former Advisor on Petroleum and Natural Resources was still interfering in the functioning of the Ministry as he makes regular calls to the officers and give directions. The reports pointed out that heads of all the departments under the Ministry were appointed by Dr Asim Hussain.

a special resolution for the voluntary delisting of the shares of Unilever Pakistan. This acceptance on the part of international firm means that the company would be paying around Rs 2.991 billion or $ 29.91 million to the holders of 199,400 ordinary shares of Unilever Pakistan. Tuesday saw the Unilever’s share price witnessing the “highest” increase of Rs 634.45 to close at Rs 13,323.45. Unlike Rs 10 of other scrips, the face value of the Unilever shares also was set at Rs 50.

The local cement industry has been experiencing mixed fortunes and still faces dilemma how to utilize its idle capacity as it grapples with high domestic costs and erratic domestic and export markets, said the manufacturers Tuesday. “We are in a fix as the healthy increase in exports in February and March was accompanied with only marginal growth in domestic cement despatches,” said a spokesman of All Pakistan Cement Manufacturers Association (APCMA). He said March 2013 was remarkable as the industry dispatched historic 3.326 million tons of cement of which 2.558 million ton was consumed locally and 0.768 million was exported. The spokesman said exports registered an increase of 22.90 percent when compared with exports made in March 2012. He said exports registered over 15 percent increase in February 2013 as well. He expressed concern that the domestic market had remained stagnant during last two months. It registered a nominal growth of 1.58 percent in Feb-

ruary and hardly moved up by 0.17 percent in March. He said stagnant economy and increase in input costs has damaged the potential market of cement. The input cost of almost every industry has increased manifold during the last few years, taking heavy toll on the businesses that are already hit by volatile security situation in the country. During the first nine months of this fiscal the total cement dispatches reached 24.542 million tons. The domestic use stood at 18.373 million tons and exported quantity was 6.169 million tons. The overall increase in domestic cement consumption was 6.05 percent while the overall decline in exports was

1.19 percent. The total increase in the dispatches of cement stood at 4.13 percent after adjusting for decline in exports. He said incessant increase in the input cost is creating difficulties for the industry. He regretted that no facilitations are forthcoming from the government to boost cement consumption. He said on the input side the price of furnace oil, the main energy fuel of cement has gone up from Rs. 33,910 per ton in 200809 to Rs. 66,065 per ton now. He said natural gas is now virtually unavailable for the cement industry. Electricity too has witnessed massive price increase in the same period from Rs. 5.6 per KWh in 2008-09 to Rs 9.45 per KWh in the current financial year. He said that price of diesel, another important fuel used by the industry, has also gone up considerably in last 10 years. The price of a liter diesel was Rs. 60.6 in 2008-09 which is Rs. 109.21 per liter today, creating difficulties for the sector in terms of both increased fuel and transportation cost. He urged the caretakers to come up with a prudent policy to boost construction sector so that 56 industries attached with this sector including cement, revive.

The company had earlier proposed Rs 9,700 as per share price and the proposed buyback was to be evaluated by the KSE Board of Directors. However a special committee of the KSE did not agree to the proposed Rs 9,700 price for the buyback and proposed that the shares of Unilever Pakistan be de-listed at Rs 15,000 per share

March augurs well for Adamjee Funds

KARACHI STAFF REPORT

All of the debt and equity funds carrying the nomenclature of Adamjee Life performed well during the just-concluded month of March. According to a company statement, as of March 28 the Investment Secure Fund (S&A), Investment Multiplier Fund, Investment Secure Fund (IFL), Investment Diversifier Fund and Amanat Islamic Fund of the Adamjee had shown a positive trend. The bids and offers for per unit of the above funds, the statement said, stood respectively at 119.6718 and 125.9703, 130.4674 and 137.3341, 119.6199 and 123.3195, 108.6124 and 111.9715 and 101.1145 and 106.4363. “Considering the growing demand for Shariah-compliant investment options in Pakistan Adamjee Life has launched Amanat Islamic Fund,” said the company. It said Adamjee Life “Amanat” fund was an Islamic open-end asset allocation/investment fund seeking to achieve its objective of stable yet aggressive returns through investing in a diverse portfolio of Shariahcompliant investments.

PM extends amnesty scheme for non-custom paid vehicles ISLAMABAD NNI

Caretaker Prime Minister Mir Hazar Khan Khoso has extended amnesty scheme of non-custom paid vehicles till April 6 while the Federal Tax Ombudsman (FTO) has taken notice of this scheme’s misuse. After receiving request from the Federal Board of Revenue (FBR), the interim PM extended amnesty registration scheme for non-custom paid vehicles till April 6. The FBR sources have informed that total 32,000 non-custom paid vehicles including trucks, wagons, coasters, double cabins, Mercedes. BMW and other vehi-

cles were registered till March 31 under amnesty scheme. So far, over 9.5 billion rupees’ revenue was collected under this scheme and it is expected that further 4.5 billion’s revenue will be received till April 6, added the sources. At the other hand, the Federal Tax Ombudsman (FTO), Shoaib Suddle, has taken notice of this scheme’s misuse over a newspaper story and demanded reports from the FBR and FIA. The newspaper story revealed that without presentation of the vehicles, they were being registered under the amnesty scheme.

A total 32,000 non-custom paid vehicles, including trucks, wagons, coasters, double cabins, Mercedes. BMW and other vehicles were registered till March 31 under amnesty scheme


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business B Wednesday, 3 April, 2013

PSO, Engro join synergies to develop self-reliant energy supply chain

Major Gainers COMPANY UniLever Pak Colgate Palmolive Bata (Pak) SPOT National FoodsXD Clariant PaK. XD

MOU INKED TO REVIEW TECHNO-ECONOMICAL FEASIBILITY OF THAR COAL PROJECT

Rafhan Maize XD Indus Dyeing Philip Morris Pak. Wyeth Pak Ltd XD MithchellsFruit

KARACHI

I

HIGH 13323.45 1869.00 1350.00 336.80 238.53

LOW 13200.00 1850.00 1266.00 329.00 229.90

CLOSE 13323.45 1869.00 1342.50 336.80 238.53

CHANGE 634.45 89.00 43.50 16.03 11.35

TURNOVER 2,240 1,000 1,250 10,100 15,100

3610.00 430.00 312.00 952.00 334.00

3610.00 405.50 299.62 928.00 320.00

3610.00 405.50 300.02 930.42 320.00

-180.00 -21.30 -15.36 -6.65 -6.00

60 1,200 10,100 1,850 700

8.83 19.76 7.06 9.83 137.49

8.46 18.84 6.57 9.05 134.80

8.77 19.68 7.00 9.13 135.29

0.28 0.92 0.42 -0.09 0.89

36,444,500 29,262,500 24,816,500 10,773,000 10,730,900

Major Losers 3790.00 426.80 315.38 937.07 326.00

Volume Leaders

STAFF REPORT

N a bid to diversify its business line, the Pakistan State Oil (PSO) Tuesday signed a Memorandum of Understanding (MoU) with Engro Powergen Limited (EPL) to review the technical and economical feasibility of the Thar Coal project. The MoU was signed by CEO and MD PSO Naeem Yahya Mir and President and CEO Engro Corporation Muhammad Ali Ansari. Those witnessed the ceremony were Zubair Motiwalla, Chairman Sindh Board of Investment and Chairman Sindh Engro Coal Mining Company (SECMC), Shamsuddin Ahmed Shaikh, CEO SECMC along with Mohammad Arif Khan, Additional Provincial Chief Secretary (P&D), Ejaz Ahmed Khan, Secretary of Coal and Energy Development Department, Sohail Butt, DMD (F&IT), Naved Alam Zubairi, SGM (Projects)

OPEN 12689.00 1780.00 1299.00 320.77 227.18

of PSO and other directors of the company. The MoU was signed keeping in view the fact that as coal was comparatively cheaper and easily available in comparison to other fuel sources, it has become the fuel of choice for developed nations across the world. Therefore, with an aim of responsibly providing for the rising energy needs of the country, PSO is exploring multiple investment opportunities in the energy sector with special emphasis on Thar Coal and intends to acquire 50% of Engro Powergen Limited’s shares in SECMC as part of this plan. Both PSO and Engro are in agreement that coal is the best possible indigenous fossil fuel resource for Pakistan and has the potential to address the country’s severe power shortage and bring energy security to the country.

Pakistan’s liquid foreign reserves stand at over $12b

Through this project, not only will the energy chain be strengthened it will also generate extensive economic activity nationwide while developing Pakistan’s human capital through the execution and operation of state-ofthe-art coal mining and coal-based power generation projects. Additionally by playing a lead role in developing this national resource, both companies will be able to strengthen their financial bottom line and expand further through downstream commercial projects based on Thar coal. Both companies are of the opinion that this MoU will serve as the foundation for a mutually beneficial partnership which will result in extensive benefits for future progress and prosperity of Pakistan. Naeem Y. Mir said: “Through the MoU two compa-

nies have combined their synergies to develop a self-reliant energy supply chain for the country. Indigenous fuel is our future and with the support and backing of the Sindh Government we are taking steps to meet Pakistan’s energy needs in the years to come.” Ali Ansari of Engro Corporation said: “This is a momentous occasion as both companies have joined hands for a project of national interest and one which would provide for the energy security of the next generation.” Zubair Motiwalla said the Sindh Government had been working tirelessly to meet the rising energy needs of the population and the decision to purchase 51% shareholding in SECMC was a clear indication of the government’s commitment and support of the Thar Coal project.

CCP imposes Rs 8.64b penalty on eFL, FFC ISLAMABAD STAFF REPORT

ISLAMABAD: The total liquid foreign reserves held by the country stood at $ 12,370.0 million on March 22, 2013. Giving a break-up of the foreign reserves position, a statement of the Central Bank issued on Monday said that Foreign reserves held by the State Bank of Pakistan were $7,277.4 million on March 22, 2013. The net foreign reserves held by banks (other than SBP) stood at $ 5,092.6 million while the total liquid foreign reserves held by the country were US $ 12,370.0 million on March 22. APP

The Competition Commission of Pakistan has imposed a penalty in the sum of Rs 8.64 billion on part of EFL and FFC for abuse of their dominant position through unreasonable price increase. A spokesman for the commission said that commission took notice on its own of a price increase carried out by all the Urea Manufacturers (‘undertakings’) in Pakistan in December 2010 that continued through 2011. The Commission

Fauji Cement Maple Leaf Cement Lafarge Pakistan B.O.Punjab Engro Corporation

constituted an Enquiry Committee to identify whether the subject price increases amounted to a contravention of the provisions of the Competition Act, 2010 (the “Act”). In this regard the Enquiry Report

concluded on 25-06-2012, carried out an analysis of factors such as (i) Gas curtailment (ii) Input Costs(iii) Profit margins (iv) Subsidies, government policies etc to reach at the conclusion that the undertakings found to be individually as well as collectively dominant, abused this position in carrying out unreasonable increase in prices in violation of Clause (a), Subsection (3) of Section 3 of the Act. All urea manufacturers were issued Show Cause Notices (SCN) for individual and collective abuse of dominant positi

8.49 18.76 6.58 9.22 134.40

interbank Rates USD GBP JPY EURO

PKR 98.3284 PKR 149.4199 PKR 1.0542 PKR 126.3815

Forex BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal

SELL

98.70 125.00 146.94 1.0363 95.33 12.39 26.55 26.05

98.95 125.25 147.18 1.0471 97.03 12.63 26.80 26.30

Pak-Iran gas pipeline project: Enquiry begins into award of contract to Tadbeer ISLAMABAD INP

An inquiry has been started into the matter of awarding contract of laying Pak-Iran Gas Pipeline to an Iranian company, Tadbeer, on relatively higher rates than the international market. The record has been sought from the Ministry of Petroleum and Inter State Gas System (ISGS) company in this regard. According to sources, international price for laying one kilometre of gas pipeline is 10 lakh dollars while the contract for laying PakIran Gas Pipeline was given to the Iranian company at 29 lakh dollars per kilometre to lay 810 kilometres of pipeline. The inquiry has been started against former advisor for petroleum Dr Asim Hussain. A report of intelligence agencies revealed that kickbacks of 450 million dollars are involved in the contract that caused the initiation of investigation against Dr Asim Hussain. According to sources, then MD of ISGS Hasan Nawab, who was negotiating for the award of the contract, was removed from his position and Mubeen Saulat was appointed on his place. Final inquiry report will prepared after scrutiny of the records of PakIran Gas Pipeline project.

CORPORATE CORNER

KARACHI: Deputy High Commissioner of Bangladesh Ruhul Alam Siddiqui and Sarah Siddika hosted a dinner on the occasion of the 42nd Anniversary of the Independence and National Day at DHA Golf Club. Picture shows Sindh Assembly Speaker Nisar Ahmed Khuro, acting dean of the diplomatic corps and Russian Consul General Andrey V Demidove along with the host and other guests. PR

Bangladesh second in readymade garments manufacturing KARACHI: Bangladesh is often cited as one of the eleven emerging economies of the world. Today, in

respect of the global market share, we are number two in the world after China in the manufacture of ready-made garments and have reached the 20 million mark in textile industry. Among other industries coming up fast in Bangladesh are ceramic, tableware, leather products, pharmaceuticals, shipbuilding, information technology, software development and fresh organic agricultural products. This was stated by the Deputy High Commissioner of Bangladesh, Mr.Ruhul Alam Siddique, at the grand dinner reception hosted by him and his wife Mrs Sarah Siddika to celebrate the 42nd National Day of the People’s Republic of Bangladesh. Mr. Nisar Khuhro, Speaker of the Sindh Assembly, was the Chief Guest. The Deputy High Commissioner of Bangladesh welcomed the Chief Guest and, addressing the gathering, said “BangladeshPakistan bilateral relations. Is a unique one strongly bonded by common historical background, cultural traditions and values…… I am very happy to share with you that, according to ‘Pakistan Micro Finance Review 2011 of the Pakistan Micro Finance Network’, the subsidiaries of the two biggest Bangladeshi NGOs, ASA Pakistan Ltd. and BRAC Pakistan Ltd., have been working in Pakistan in the micro-finance and other social development sectors covering over 50% of micro credit of Pakistan. 240,000 active borrowers out of 465,000 active borrowers in Pakistan are

their beneficiaries. The BRAC Pakistan since 2008 has also been running free schools, which now number 400, in Sindh and in other parts of this country. There are many other areas where we can share our best practices and progress together,’’ he said. PRESS RELEASE

Etihad launches daily flights from Abu Dhabi to Washington

‘Pursuit of Happiness’

KARACHI: Etihad Airways, the national carrier of the United Arab Emirates, has commenced nonstop daily flights between Abu Dhabi and Washington, D.C., creating the first direct air link between the two capitals. The new service to Washington Dulles International Airport has been introduced to meet strong demand for government and business travel, as well as growing demand for leisure trips between and beyond the cities. “Government and corporate customers in both markets have given us strong indication that the Abu Dhabi - Washington route can support a daily service from day one. We have confidently responded by committing 3,360 seats per week and already our forward bookings on the route are very encouraging in both directions. In addition, we will open a US$6.8 million premium lounge this week in Terminal A at Dulles Airport to benefit our Diamond First and Pearl Business Class passengers,” James Hogan, President and Chief Executive Officer of Etihad Airways, said. PRESS RELEASE

ISLAMABAD: An event titled “Pursuit of Happiness” was organized by Green Volunteers in collaboration with AIESEC in Islamabad on the 23rd of March to mark the importance of Pakistan Day. The theme of the event revolved around spreading happiness to the less fortunate but equally rightful children of Bilal Model School, an institution located in central Barakhao. Youth of Islamabad gathered in large numbers to take part in this gracious cause. The administration as well as the children of Bilal Model School eagerly welcomed everyone and an interactive session was organized to break the ice between the two parties. From there on, happiness swirled across the faces of children as the volunteers began playing a series of sports including cricket, football & other conventional games. The female volunteers set out a face painting stall, generating excitement among children who seemed hugely fascinated by all the colours. PRESS RELEASE

E-paper Profit 3rd April, 2013  

E-paper Profit 3rd April, 2013

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