Karachi: With reference to your letter No. KSE/C-1076-2448 dated 26.03.2012, this is to inform your that the majority security holders are desirous to purchase the shares from all the minority security holders and we hereby apply for voluntary de-listing of the Company on the following grounds:
1. Due to heavy losses suffered by the Company, the Directors could not declare any dividend during the last 5-years.
2. The Company is facing serious cash flow problems and not in a position to pay liabilities to the creditors and they have initiated legal action against the Company. However, one of the majority shareholders has advanced Rs. 162 million upto December, 2011 which was utilized for payment of overdue bank and leasing companies liabilities.
3. As per the latest accounts for the half year ended 31.12.2011. the accumulated losses has ended the paid-up capital and reserves and the net shareholders’ equity is negative to the extent of Rs.80 million.
In view of the above grounds, the majority security holders holding more than 78% of Company shares are agreed and ready to purchase all securities without exception from all the minority security holders and ready to pay the price Rs. 1.0 per share.
As required under Listing Regulations 30-C and 30-D, we enclose herewith the following documents.
1) A Cheque for Rs. 250,000/- being Application fee [Listing Regulation 30-C (i)]
2) Consent of purchase agent [Listing Regulation No.30-C (v)]
3) Undertaking from purchase agent [Listing Regulation 30-C (iv)]
4) Board Resolution dated 22.03.2012 passed for voluntary de-listing of the Company – [Listing Regulation 30-D (i)]
5) Annual Account for the year 30.06.2011 and Half Year Account for 31.12.2011.
Resolution passed in the B.O.D Meeting held on 22.03.2012 for De-Listing of Southern Networks Limited from the Karachi Stock Exchange at the registered office of the Company 5-Y, Block-6, P.E.C.H.S., Karachi.
“Consequent upon the revocation of eligibility of Southern Networks Limited ordinary shares by CDC and suspension of trading by Karachi Stock Exchange, the majority security holders have agreed to purchase the shares from all the minority security holders.
Further resolved that the Company Secretary is hereby directed to initiate the voluntarily de-Listing process under the listing regulations of The Karachi Stock Exchange (Guarantee) Limited and take necessary steps in this regard.
For more information, contact:
Southern Networks Limited
5-Y, Block- 6, P.E.C.H.S.,
Karachi- 75100, Pakistan
UAN: 111 222 333
Fax: (92 21) 4386948