Masood Textile Mills Limited is a Faisalabad-based vertically-integrated textile company, that is listed on the stock exchange.
The financial results of the company released yesterday included under the head ‘any other information’, the appointment of Miss Chen Yan, a nominee of Shanghai Challenge Textile Company Ltd, Shanghai, Peoples Republic of China as the new director, in place of Shahid Iqbal who resigned.
Masood Textile Mills (MSOT) was in the spotlight for some time earlier in October when another Chinese company, Shandong Ruyi Science and Technology Group Co Ltd, pulled back from its offer to acquire 31.2 million shares of the company.
A filing at the market at the time stated that the conditions required to be fulfilled under the Share Purchase Agreement (SPA) between the sellers and the acquirers for the transaction were not fulfilled within the agreed timeline, which was why the completion of the transaction was no longer possible under the SPA terms.
The intended acquisition was approximately for 52 per cent of the 60m paid-up shares of the company.
MSOT is among the ‘highly’ profitable listed entities. It paid dividends to shareholders at a uniform rate of 15.5pc for each of the last three years (2011-13). The company’s total assets stood at Rs19.3 billion at the close of FY13. Against the paid-up capital of Rs995m, the company held Rs4.11bn in reserves, which produced the break-up value per share of par value Rs10 at Rs51.33.
Sources suggest that the Chinese firm — Shanghai Challenge Textile Company Limited is taking up 24.36pc stake in Masood Textile through the acquisition of 14.6m shares.
