KARACHI: ZIL Ltd, a maker of personal care products, said on Friday its foreign acquirer has accepted 1.4 million shares — constituting 23.5 per cent of total shareholding — that were tendered by ordinary investors during the public offer period ending on May 10.

On March 1, New Future Consu­mer International General Trading LLC signed a share purchase agreement with the majority shareholder of ZIL Ltd for the acquisition of a 61.3pc stake in the company.

Subsequently, the acquirer made a “public offer” for 19.3pc shareholding in the locally listed firm at Rs286.64 a share. This exercise is mandatory under the takeover rules that require that the potential buyer of a listed company offer to purchase at least half of the free float, which means the shareholding is owned by the general public.

However, the acquirer revised the public offer and showed interest in buying up to 1.7m shares or 28.6pc of total shareholding at a higher rate of Rs340 apiece.

According to Topline Securities, the acquirer will end up purchasing 5.19m shares constituting an 84.8pc stake in ZIL Ltd along with the shares acquired through the share purchase agreement with the company’s local sponsor.

Speaking to Dawn on Friday, an investment banker involved in the transaction said the acquirer is likely to buy another 5pc stake at a later stage. “The company is likely to go for de-listing once the new board comes in,” he said. ZIL Ltd, the producer of household brands like Capri and Opal soaps, posted a net profit of Rs67.6m in January-March versus a net loss of Rs37.6m a year ago.

Published in Dawn, May 13th, 2023