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ARY Group going to acquire 100% shares of WorldCall Telecom on July 2

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WorldCall

SECP and PSX are silent over this issue as there was no approval from SECP and the PEMRA after objections raised by the PBA on January 21, 2020

KARACHI: ARY Group is going acquire 100 per cent shares of the WorldCall Telecom Limited as a signing ceremony would be witnessed at PC Hotel Lahore on July 2, 2020, according to invitations received from the ARY Group here on Friday.

The Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) are silent over this issue as there was no approval from the SECP and the Pakistan Electronic Media Regulatory Authority (PEMRA) after objections raised by the Pakistan Broadcasters Association (PBA) on January 21, 2020.

The PBA, in this regard, had raised questions with the SECP, PEMRA that the ARY Communications Limited cannot sign this deal as it will create a conflict of interest with others media groups.

The proposed acquisition of WorldCall Telecom by the ARY Group is completely illegal, inter-alia, because of the following.

According to the PBA letter, “it will create a conflict of interest and a monopoly because the ARY Group which is a media broadcaster will own, control and operate distribution services by acquiring WorldCall Telecom which is strictly prohibited under, Inter-Alia, Rule 13(3) and 13(4) of the Pakistan Electronic Media Regulatory authority Rules 2009, Regulation 5(6) and 11 of the Pakistan Electronic Media Regulatory Authority (Television Broadcast Station Operations) Regulations 2012, regulations 5(5) of the Pakistan Electronic Media Regulatory Authority (distribution Services Operations) Regulation, 2011 and Section 23 of the Pakistan electronic Media Regulatory Ordinance, 2002.”

It further added, “The Supreme Court of Pakistan, in the judgement dated July 8, 2018 passed in Civil Appeals No 700 to 703 of 2017, has held that broadcasters being allowed to hold distribution licenses would be detrimental to the public interest and that such prohibition was not a violation of article 18 of the Constitutions, 1973.”

“The acquisition of shares in WorldCall Telecom Limited by the ARY Group is also a violation of the Securities Act 2015, and the listed companies (Substantial Acquisition of voting shares and takeovers Regulations 2017,” the PBA letter said.

At that time, the PBA had requested the PEMRA, SECP to take immediate action to stop and nullify the acquisition of more than 51% shares in WorldCall Telecom by the ARY Group without any delay.

Pakistan Stock Exchange has not placed this letter (Material Information) on its website for their investors nor did the SECP and PEMRA reply over it.

The share price of the WorldCall Telecom has jumped to Rs 0.97 today from Rs 0.79 on the previous day.

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