Lahore: Pak Elektron Limited has announced a significant restructuring of its share capital structure, involving the cancellation of 44,957,592 preference shares valued at Rs. 10 each. The company, through an auditor's certificate, confirmed that the cancelled preference shares, along with an accumulated preference dividend amounting to Rs. 640,645,686, were converted into 67,637,346 ordinary shares, also valued at Rs. 10 each, as of December 31, 2024.
According to the details provided, the issued capital before the conversion and cancellation included a preference share capital of Rs. 449.58 million and an ordinary share capital of Rs. 8.56 billion. Following the cancellation of the preference shares, the ordinary share capital increased by Rs. 676.37 million, resulting in a total issued ordinary share capital of Rs. 9.24 billion post-conversion. The company's current authorized ordinary share capital stands at Rs. 10 billion.
The management of Pak Elektron Limited holds the responsibility for maintaining records related to the issuance, conversion, and cancellation of both ordinary and preference shares, ensuring that these records are free from material misstatements. The auditor's responsibility was to confirm the factual position of the share capital structure pre and post-cancellation, following guidelines set forth by the Institute of Chartered Accountants of Pakistan.
According to information available from the Pakistan Stock Exchange (PSX), the cancellation of preference shares aligns with Clause 14 of the company's Articles of Association. The company has reportedly completed all necessary regulatory formalities in respect of this conversion and cancellation process.
This restructuring move was confirmed through a series of procedural verifications, including a review of notices sent to preference shareholders, the company's articles of association, share book details from the Central Depository Company of Pakistan Limited, and the latest audited financial statements. Recalculations of the accumulated preference dividend and the number of ordinary shares issued upon conversion were also conducted to ensure accuracy.
This certificate, detailing the changes in Pak Elektron Limited's share capital structure, is intended for submission to the Central Depository Company of Pakistan Limited and the Pakistan Stock Exchange Limited, and is not intended for any other use or distribution.