Karachi Electric Supply Company Limited’s issuance of 7.25% right shares

Karachi: We refer to the Letter and attach, herewith, Auditors Certificate on KESP subscription to the right shares which were not subscribed by the minority shareholders.

We would like to clarify the position with respect to post-7.25% right issue enhanced paid up capital of the Company as follows:-

 

Amount (PKR)
Pre-7.25% right Issue 74,516,235,791
7.25% right issue 5,402,427,096
Post-7.25% right issue paid up capital 79,918,662,887

 

In the attached certificate, the Auditors of the Company have net off the transaction cost of PKR 164,152,782 incurred on issuing additional share capital and worked out the enhanced paid up capital of the Company at PKR 79,754,510,105 (Rupees seventy nine billion seven hundred fifty four million five hundred ten thousand one hundred five only). The said transaction cost will be amortized over the next few years and as such paid up capital of the Company is 22,833,903,682 ordinary shares of PKR 3.50 each valuing at PKR 79,918,662,887.

Confirmation for Paid-up Capital

a) we confirm that we have verified from bank statements and books and records of Karachi Electric Supply Limited (“the Company”) that following have been received by the Company against right issue of shares as approved in the Board of Directors meeting held on 29 July 2011:

 

Rupees

From KES Power Limited 3,921,306,000
From Government of Pakistan 1,386,034,051
From Minority Shareholders (excluding unsubscribed portion)  86,740
 ————-
 5,307,429,791
From KES Power Limited for unsubscribed portion of minority right Shares 94,997,305
  ————-
 5,402,427,096

 

b) we confirm that as per the audited financial statements of the Company as at and for the year ended 30 June 2011, the Company’s paid-up capital (ordinary shares) is Rs. 74,352,083,009 (Rupees seventy four billion three hundred fifty two million eighty three thousand nine only). The paid-up capital is net of transaction costs of Rs. 164,152,782 (Rupees one hundred sixty four million one hundred fifty two thousand seven hundred eighty two only) and represents 21,290,353,083 ordinary shares of Rs. 3.50 each. The above does not include the subscription money of Rs. 5,402,427,096 (Rupees five billion four hundred two million four hundred twenty seven thousand ninety six only) received against right issue of shares as mentioned in (a) above; and

c) we confirm that based on receipt of the subscription amounts for the right issue of shares as mentioned in (a) above, the enhanced paid-up capital of the Company will be Rs. 79,754,510,105 (Rupees seventy nine billion seven hundred fifty four million five hundred ten thousand one hundred five only). This paid-up capital will be net of transaction costs of Rs. 164,152,782 (Rupees one hundred sixty four million one hundred fifty two thousand seven hundred eighty two only). The above is as per the decision in the Board of Directors meeting held on 29 July 2011 whereby a 7.25% right share issue was approved. This would result in total of 22,833,903,682 ordinary shares of Rs. 3.50 each. Further, we have been given to undersigned by the Management of the Company that, the Company is in process of issuing right shares, subject to completion of necessary regulatory formalities.

For more information, contact:
Adil Murtaza
Assistant Manager, Media and PR
Karachi Electric Supply Company Limited (KESC)
2nd Floor, State Life Building No 11, Abdullah Haroon Road, Saddar, Karachi
Tel: +9221 9920 7163
Cell: +92346 822 3641
Email: adil.murtaza@kesc.com.pk

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