ICI Pakistan Limited’s board meeting results for the quarter and half year ended June 30, 2011

ICI Pakistan Limited’s board meeting results for the quarter and half year ended June 30, 2011

Karachi: We wish to inform you that the Board of Directors of ICI Pakistan Limited (ICI) at its meeting held on August 24, 2011, has approved the unaudited accounts of the Company for the quarter and half year ended June 30, 2011 with a limited scope review by the statutory auditors, showing the following results:

Interim Dividend

The Board has approved an interim dividend in respect of the financial year ending December 31, 2011 at the rate of 35% i.e., Rs 3.50/- per share of Rs 10/- each on the issued and paid up share capital of Rs 1,388,023,000/-, to be payable to the members whose names appear in the Register of Members on September 15, 2011.

Financial Results

 

Amount in Rs ‘000

For the 3 month For the 6 month  For the 3 month For the 6 month
 June 30, 2011 June 30, 2011 June 30, 2010 June 30, 2010
Net sales, commission and toll income 9,771,506  20,438,410 8,978,752 17,066,916
Cost of sales  (8,355,009) (17,485,076) (7,041,702) (1 3,920,429)
 ———–   ———– ———–  ———–
Gross profit 1,416,497 2,953,334 1,937,050 3,146,487
Selling and distribution expenses (524,637) (897,704) (440,257) (839,534)
Administration and general expenses  (375,702) (645,905) (279,781) (535,300)
 ———–   ———– ———– ———–
Operating result 516,158 1,409,725 1,217,012 1,771,653
Financial charges  (23,551)  (47,393) (54,574) (91,977)
Workers’ profit participation fund (28,546) (78,955) (62,028) (94,255)
Workers’ welfare fund  (11,038) (30,438) (24,029)  (36,474)
Other operating charges (4,072)  (14,429)  (8,021)  (14,990)
———– ———– ———–  ———–
(67,207)  (171,215) (148,652)  (237,696)
Other operating income 93,533 252,961 109,104 253,285
———– ———– ———–  ———–
Profit before taxation 542,489  1,491,471 1,177,464 1,787,242
Taxation (194,048) (518,914)  (409,220) (622,220)
 ———–  ———– ———–  ———–
Profit after taxation 348,441  972,557 768,244  1,165,022
 ———–  ———–  ———–  ———–

(Rupees)

Earnings per share – Basic and Diluted  2.51 7.01 5.53 8.39

 

 

The Share Transfer Books of the Company shall remain closed from September 15, 2011 to September 22, 2011 (both days inclusive). Transfers received in order at the office of our Shares Registrar, FAMCO Associates (Pvt) Limited, State Life Building 1-A, Ground Floor, I.I. Chundrigar Road, Karachi 74000, by the close of business on September 14, 2011 will be treated in time to entitle the transferees to the above interim dividend.

Reconstruction of ICI Pakistan:

The Board of Directors also considered and approved the Scheme of Arrangement for the reconstruction of ICI Pakistan Limited, the details whereof are contained in the Annexure to this letter.

Reconstruction of ICI Pakistan Limited

The Board of Directors of ICI Pakistan Limited (“ICI Pakistan”) at its meeting held on August 24, 2011 has approved a Scheme of Arrangement (the “Scheme”) for the reconstruction of ICI Pakistan by (i) separating its Paints Undertaking inclusive of the Paints Business and all assets, rights, liabilities and obligations pertaining to the Paints Business and vesting the Paints Undertaking in Akzo Nobel Pakistan Limited (“AkzoNobel Pakistan”) against the issue of shares by AkzoNobel Pakistan to the shareholders of ICI Pakistan and (ii) the consequent reduction in the issued and paid up share capital of ICI Pakistan.

The Scheme will be processed in accordance with Sections 284 to 288 of the Companies Ordinance 1984 for the sanction and appropriate facilitating orders of the High Court of Sindh. In this connection approval of the Scheme will be sought from the members in general meeting of each of the two companies.

The Scheme

Set out below for your information is a brief summary of the Scheme.

The Paints Undertaking

The Paints Undertaking to be separated from ICI Pakistan and to be transferred and vested in AkzoNobel Pakistan through the Scheme comprises the Paints Business and all its assets, rights, liabilities and obligations.

Issue of Shares and Reduction of Share Capital

As a consequence of the transfer to and vesting in AkzoNobel Pakistan of the Paints Undertaking, AkzoNobel Pakistan shall issue at par 46,443,250 ordinary shares of Rs, 10 each credited as fully paid up of the aggregate nominal value of Rs. 464,432,500 to be allotted to persons who on a day to be fixed by the directors of ICI Pakistan (the “Record Date”) after the Scheme is sanctioned by the Court and becomes effective in accordance with its terms, are registered holders of the fully paid up ordinary shares of Rs. 10 each of ICI Pakistan (prior to the reduction of capital of ICI Pakistan) and such allotment shall be made in proportion to the shares of ICI Pakistan held by the registered holders of the fully paid up ordinary shares of Rs. 10 each of ICI Pakistan (prior to the reduction of capital of ICI Pakistan), such that, in respect of every 100 fully

 

For more information, contact:
ICI Pakistan Limited
ICI House,
5 west wharf, PO Box 4731
Karachi 74000
Tel: +92 21 3231 0620
Fax: +92 21 3231 0617

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