Who uses material information: AkzoNobel share jumps Rs 13 in 47 minutes

KARACHI: A meeting of voluntary delisting committee of Pakistan Stock Exchange (PSX) held on February 25 to delist AkzoNobel Pakistan Ltd, the market rumours said, but despite a lapse of a day, the brokers and AkzoNobel’s investors are still waiting for the decision of the meeting.

The sources claimed that there was a hike of Rs 13/per share of AkzoNobel followed by a decline in just 47 minutes at trading screen. Participants of the meeting are using ‘material information’ for their and their associate’s benefits, the sources claimed.

A broker said, “no information has formally come out in relation to the fate of delisting, there has been a large-scale speculation and price build up since the day of announcement of voluntary de-listing.” There was a meeting of the representatives of AkzoNobel Pakistan Ltd and the Delisting Committee of PSX on Feb 25.

It is reminded that brokers sitting on the voluntary-delisting committee represent a clear conflict of interest, the broker said.

The Treasure Magazine tried to contact different brokers and the management of the PSX, but there was no response from their side till the filing of this news.

AkzoNobel Pakistan Ltd, a listed chemical company, announced three week ago that its foreign majority shareholder — ICI Omicron BV — intends to buy back 11.2 million shares comprising 24.19 per cent of the company’s paid-up capital from minority stakeholders and go for voluntary delisting.

The company affirmed, the majority shareholder intends to obtain full ownership of the Pakistan subsidiary.

The company was created in April 2011 when ICI Pakistan Ltd split into two listed entities: AkzoNobel Pakistan (comprising the paints business) and ICI Pakistan comprising all other businesses of the pre-split entity.

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