Karachi: AKD Securities Limited (AKDSL), acting as Manager to the Offer for Greentree Holdings Limited, disclosed that the acquisition process of TRG Pakistan Limited shares has encountered multiple legal challenges. According to a detailed statement, the acquisition process initiated on January 15, 2025, when Greentree Holdings Limited made a public offer to acquire 191.69 million shares, or 35.147% of TRG Pakistan Limited's paid-up share capital.

The acquisition was temporarily halted on February 24, 2025, due to a Stay Order issued by the Islamabad High Court. This order came as a result of Writ Petition no. 731 of 2025, filed by Sign Source Limited and others. The Stay Order was subsequently lifted on March 18, 2025, allowing the dispatch of offer letters to eligible shareholders on March 22, 2025, with the acceptance period beginning on March 25, 2025.

A further complication arose on March 22, 2025, when a case was filed in the Sindh High Court challenging the acquisition under Section 286 of the Companies Act, 2017. The court ordered a status quo on March 24, 2025, preventing the transfer of tendered shares and the payment of sale consideration. The acceptance period was consequently extended, and the final hearing took place on May 8, 2025. The court has reserved its judgment.

The original acceptance period concluded on May 15, 2025. On the same day, AKDSL announced a Corrigendum to the Public Announcement of Offer, in compliance with the Listed Companies (Substantial Acquisition of Voting Shares and Take-overs) Regulations, 2017. This Corrigendum, published in the Business Recorder and Nawai Waqt, led to the recommencement of the offer period.

According to information available from the Pakistan Stock Exchange (PSX), the Securities and Exchange Commission of Pakistan (SECP) has permitted AKDSL to accommodate requests from shareholders for the return of tendered shares following the publication of the Corrigendum. Shareholders have until June 18, 2025, to request the return of their shares. Those who opt for the return will not receive payments, but may re-tender their shares during the revised acceptance period from July 2 to July 8, 2025.

The ongoing legal proceedings in the Sindh High Court, specifically case JCM 12 of 2025, will determine the future course of action concerning the payments for tendered shares. The outcome of this litigation remains awaited, and AKDSL has emphasized that all payments will be contingent upon the court's final decision.