Habib Sugar Mills announces a massive buy-back of 15 million shares

In a pivotal decision, the Board of Directors (BoD) of Habib Sugar Mills Limited (PSX: HABSM) has officially endorsed and proposed the repurchase of up to 15 million issued ordinary shares with a face value of Rs5 each, according to a statement released by the company today.

The recommendation for this significant buy-back is contingent upon approval by the company's members through the passing of special resolutions.

HABSM, a key player in the manufacturing and marketing sectors, is actively involved in the production of refined sugar, ethanol, liquefied carbon dioxide (CO2), household textiles, offering bulk storage facilities, and engaging in commodity trading.

The anticipated buy-back is expected to have a favorable impact on the company's financial standing, as outlined in the notice. It is projected to enhance both the Earnings per Share (EPS) and the break-up value of the company's shares.

Additionally, the move is seen as providing a valuable exit opportunity for shareholders looking to liquidate their investments.

This strategic maneuver by Habib Sugar Mills aligns with its commitment to optimizing financial performance and fostering shareholder value.