TRG Pakistan Divests 3.56 Million IBEX Shares in $70 Million Deal

In a significant move within the financial landscape of Pakistan, TRG Pakistan Limited has made headlines with its recent divestment of shares. The company’s associate, The Resource Group International Limited (TRGI), has successfully concluded a definitive agreement with IBEX Limited, a portfolio company that is publicly traded on Nasdaq. This transaction marks a pivotal moment for both entities involved, showcasing the dynamic nature of investment and share repurchase agreements in the current market.

Under the terms of this agreement, IBEX Limited has repurchased approximately 3.56 million shares from TRGI, amounting to a total transaction value of $70 million. This announcement was made public through a notice to the Pakistan Stock Exchange (PSX) on Wednesday, adhering to the regulations set forth in the Securities Act of 2015. The financial advisory for this substantial transaction was provided by Houlihan Lokey, a well-respected name in financial consulting.

The breakdown of the transaction is quite interesting. The total consideration of $70 million consists of $45 million in cash and an additional $25 million in seller financing. The purchase price of $19.65 per share reflects the last closing price prior to the announcement, as well as the five-day volume-weighted average trading price for IBEX common shares on the Nasdaq Global Market at the time of signing. This strategic pricing indicates a well-calculated approach by both parties to ensure a fair and beneficial deal.

Following this repurchase, TRGI will continue to hold ownership of 1.8 million common shares of IBEX. It is important to note that TRGI’s shareholder agreement with IBEX, which dates back to November 2017, will remain in effect. Furthermore, IBEX has secured the right to repurchase the remaining shares owned by TRGI within a four-year timeframe, contingent upon certain conditions being met. This clause adds an interesting layer to the agreement, allowing for potential future transactions that could further shape the relationship between the two companies.

This divestment not only highlights the active engagement of TRG Pakistan Limited in the market but also reflects the broader trends in corporate finance where companies are strategically managing their portfolios. As the financial landscape continues to evolve, such transactions will likely play a crucial role in shaping the future of investments in Pakistan. Investors and market watchers alike should keep a close eye on how these developments unfold, as they could signal new opportunities and shifts in market dynamics.