Latest news with #ZiaChishti
Business Recorder
5 days ago
- Business
- Business Recorder
IHC suspends earlier order directing TRG Pakistan to hold elections
TRG Pakistan Limited (TRG) informed that the Islamabad High Court (IHC) has issued an interim order suspending its earlier judgment. The development, announced by TRG in its notice to the Pakistan Stock Exchange (PSX) on Monday, stems from a writ petition filed by a shareholder holding 55,000 shares (0.01%) of TRG Pakistan against the Securities and Exchange Commission of Pakistan (SECP), TRG Pakistan, and others. The petitioner sought a directive for the company to hold board elections. In this respect, the IHC passed an order on June 30, 2025, directing the SECP to invoke its powers under Section 147 of the Companies Act, 2017 and call an Extraordinary General Meeting (EOGM) of TRG Pakistan to conduct elections per law. At the time, TRG Pakistan stated that the 'order has several shortcomings and irregularities, and is in the process of filing an Intra-Court Appeal (ICA) in the Islamabad High Court'. Subsequently, TRG Pakistan Limited on Monday confirmed that it has received a certified copy on July 12, 2025, of an order passed by the IHC related to an intra-court appeal filed against the ruling in Writ Petition No. 2337 of 2025. 'The Islamabad High Court has taken cognisance of the matter, issued notices and passed an interim order suspending the operation of the impugned judgement in Writ Petition No. 2337 of 2025 till the next date of hearing,' read the notice. At the time of filing this story, TRG's share price was hovering at Rs57.95, a loss of Re0.12 or 0.21%. Earlier this month, the Supreme Court of Pakistan ordered a status quo on a Sindh High Court (SHC) ruling in favour of former TRG Pakistan CEO Zia Chishti. The SHC had issued a ruling on June 20, 2025, abating a $53 million tender by TRG Pakistan's largest shareholder, Greentree Holdings, as well as annulling Greentree's shareholding and ordering elections. Greentree subsequently appealed the ruling at the apex court, which led to an interim order asking all parties to maintain the status quo.
Business Recorder
04-07-2025
- Business
- Business Recorder
Status-quo: Chishti suffers Supreme Court reversal in battle for TRG Pakistan control
In a reversal for former TRG Pakistan CEO Zia Chishti, the battle for the control of PSX-listed TRG Pakistan Limited has taken a new turn with status-quo ordered by the Supreme Court of Pakistan (SCP) on a recent ruling by the Sindh High Court (SHC) in favour of Chishti. The SHC had issued a ruling on June 20, 2025 abating a $53 million tender by the company's largest shareholder Greentree Holdings, as well as annulling Greentree's shareholding and ordering elections. Greentree subsequently appealed the ruling at the SCP, which has led to an interim order asking all parties to maintain status quo. US arbitrator orders Zia Chishti to pay $9.1mn to TRG International TRG Pakistan's share price reacted immediately to the posting of the order on the Supreme Court's website, jumping by 7% on hopes of a quick resumption of the tender, before reaching at a more modest gain of 1% as investors digested the news of a legal battle through the SCP. Chishti had resigned from the company in late 2021 upon disclosure in US Congressional testimony of an arbitration award against him for sexual misconduct. The company's current management has maintained that any association of Chishti with the company would be damaging to its assets and reputation. At the same time, the company's Bermuda based affiliate TRG International has sought to remit to Pakistani shareholders the proceeds of sales of its stakes in its portfolio companies by way of share purchases by Greentree Holdings. Zia Chishti, The Telegraph settle libel suit over reporting of ex-employee's 'grooming' allegations Chishti had successfully challenged Greentree's remittance of funds and purchase of shares in the SHC, which has now been appealed in the SCP. With Chishti's takeover efforts for TRG Pakistan now at least delayed by the Supreme Court appeal process, the impact on former TRG Pakistan CEO's financial liabilities is unclear as Chishti's path to accessing the significant liquidity at TRG International has narrowed. With significant creditor liabilities ranging from the US tax authorities to bank defaults to arbitration fee awards, Chishti is estimated to owe over $30 million to various parties.
Business Recorder
23-06-2025
- Business
- Business Recorder
TRG takeover battle: Zia Chishti lands favourable SHC ruling amid mounting financial pressure
The saga over the battle for control of Pakistan Stock Exchange (PSX) listed technology leader, TRG Pakistan Limited, took a new twist with an order by the Sindh High Court on a company petition filed by the company's former CEO, Zia Chishti, challenging the tender announced in January 2025 by the company's largest shareholder, Bermuda based Greentree Holdings Limited. The tender was to remit up to $53 million to Pakistani shareholders of TRG Pakistan, and had been placed on hold pending the hearing of the petition. SHC restrains Zia Chishti, wife from transferring shares of TRG Pakistan: notice The judge ruled that the company violated Section 286 of the Companies Act relating to shareholder oppression and that such oppression took place with the purchase of shares of TRG Pakistan Limited by Greentree Holdings. The judge has ordered the abatement of the Greentree Holdings tender, the conversion of the shares held by Greentree Holdings into treasury shares of TRG Pakistan and the holding of Company elections. A successful completion of the tender would have accorded control of the company to Greentree Holdings, in addition to providing an exit to company shareholders. In a notice to the PSX issued today, the company has stated that the judge's order contains 'various irregularities and infirmities' and is 'assessing legal options, including challenging the decision by filing an appeal before the Honourable Supreme Court of Pakistan'. Market analysts believe that the company will appeal the ruling. Market observers expressed disappointment at the ruling of the Sindh High Court, as the tender provided shareholders an opportunity to lock in a near 40% premium to the current share price. The company's share price responded negatively to the news of the ruling, dropping 12% on the prospect of a lack of clarity on the company's future. Since late 2021, the company has been mired in a takeover battle between Chishti and his allies and the current management of TRG. Chishti resigned as CEO of the company following disclosure in US Congressional testimony of an arbitration award against him for sexual harassment and assault of an ex-employee, in which he had to pay the former employee over $5 million in damages. TRG's management has held that any association of Chishti with the company would be fatally damaging to the Company's assets given his reputation. Since his exit from the company, Chishti has filed several defamation suits relating to his sexual misconduct award. US arbitrator orders Zia Chishti to pay $9.1mn to TRG International In the United States, he sued the former employee for defamation but was dismissed by a US judge. In the United Kingdom, Chishti sued The Telegraph for carrying an article that he deemed defamatory, and settled with the newspaper in March 2025 with The Telegraph providing an apology. Meanwhile, in Pakistan, Chishti sued the board and management of TRG for defamation for referring to his arbitration award in court filings; those proceedings have been suspended by order of the Supreme Court. Chishti's court victory comes against the backdrop of severe creditor pressure on him. In January 2025, he lost an arbitration filed against him by TRG International for pledging his shares in TRG Pakistan for a loan extended to him by JS Bank, apparently for the purpose of building up his shareholding in the Company. In its notice today, TRG has informed that this arbitration award, which included a $9 million payment order against him, has been confirmed for collection by a United States Federal judge. In addition, in January 2025, Chishti defaulted on the above-mentioned Rs3 billion loan from JS Bank, which has attempted to seize his shares in the Company as collateral but has been prevented from doing so by several stay orders relating to the arbitration award enforcement. Chishti's financial woes are further complicated by the recent disclosure of a tax lien of $10 million placed on Chishti's assets by the United States Internal Revenue Service, for unpaid United States federal taxes. Industry observers have expressed dismay at the continuing upheaval within the country's leading technology player, especially since the tender was set to provide clarity to the future of the company. With the recent ruling, the battle seems likely to continue.
Business Recorder
30-04-2025
- Business
- Business Recorder
TRG Pakistan posts Rs4 billion profit in 9MFY25
TRG Pakistan Limited on Wednesday posted a profit-after-tax (PAT) of Rs4 billion in the first nine months of the financial year 2024-25, against a loss-after-tax of Rs16.73 billion recorded in the same period last year. The company shared the development in a notice to the Pakistan Stock Exchange (PSX). The profit comes in line with Rs5.26 billion the company made through the share of profit in equity accounted investee. US arbitrator orders Zia Chishti to pay $9.1mn to TRG International The earnings per share of the company in 9MFY25 stood at Rs7.36 against the loss per share of Rs30.67 in the same period last year. TRG Pakistan Limited was incorporated in Pakistan as a public limited company in 2002. The company obtained a license from the Securities And Exchange Commission Of Pakistan (SECP) to perform as a Non-Banking Finance Company and undertake venture capitalist investment. TRG Pakistan incurs loss of Rs30.8bn in FY24 TRG Pakistan is engaged in investments, particularly in technology, medical insurance, and IT-enabled services through its associate, The Resource Group International Limited (TRGIL). In November 2024, IBEX Limited, a US-based technology company, repurchased approximately 3.56 million shares for $70 million from The Resource Group International.
Business Recorder
29-04-2025
- Business
- Business Recorder
US arbitrator orders Zia Chishti to pay $9.1mn to TRG International
In a big blow to former TRG Pakistan CEO Zia Chishti, a US arbitrator has ordered him to pay $9.1 million (Rs2.5 billion) to TRG International, Business Recorder learnt on Tuesday. The arbitration was regarding the legality of share pledges of TRG Pakistan that were central to Zia Chishti's borrowing Rs2.5 billion from JS Bank to buy additional shares of TRG Pakistan. TRG had alleged that it was part of a plan by him and the JS Group to illegally take over TRG Pakistan as a first step towards taking control of TRG's international assets. TRG Pakistan shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday. 'The company has been informed by its affiliate The Resource Group International Limited ('TRGIL') that a final award has been issued by a US arbitrator in respect of the arbitration initiated by TRGIL against Mr Chishti challenging the pledging by Mr Chishti of company shares owned by him. 'On January 27, 2025, the arbitrator had issued a partial final award which ruled, inter alia, that shares pledged by Mr Chishti, primarily to JS Bank as security for a loan, were in breach of contractual obligations of Mr Chishti. 'On April 22, 2025, the arbitrator issued a final award that, in addition to the remedies contained in the partial final award dated January 27, 2025, ordered Mr Chishti to pay TRGIL a sum of US$ 9.1 million,' the notice read. Zia Chishti 'resigns as CEO, director at TRG Pakistan' TRG contended that Chishti was not allowed to pledge the shares given his contractual undertakings, and had asked the arbitrator to order him to remove the pledge. In January 2025, the US arbitrator ruled in favour of TRG, and declared that Chishti had breached his contractual obligations by making the pledge. The court then ordered him to remove the pledge. In April 2025, the arbitrator has ordered Chishti to pay $9.1 million (or PKR 2.5 billion) to TRG. As questions are raised about the ability of former TRG Pakistan CEO to pay such a significant amount to TRG, the fate of Rs2.5 billion loan from JS Bank to Chishti remains unclear. In recent filings with the Sindh High Court, JS Bank has declared the loan to be in default. TRG has had stay orders in place from the Sindh High Court since 2023 preventing the exercise of security on the loan. Zia Chishti, The Telegraph settle libel suit over reporting of ex-employee's 'grooming' allegations It is unclear whether the loan continues to be carried on JS Bank's books given the default and the stay orders on collateral. During the most recent quarter ended March 31, 2025, JS Bank reported profit before tax of Rs2.7 billion, which could get wiped out with a write-off of this loan Market analysts have questioned the nature of the loan made in 2022, as it represented a huge exposure for JS Bank for a loan made to a single person. The loan was renewed in November 2024 despite the stay orders on the share pledge security were in place, only to be in default two months later. In the bourse notice on Tuesday, TRG Pakistan also shared that it had received copies of certified orders regarding the adjudication of Writ Petitions 3383 and 3395 of 2025 filed in the Lahore High Court and 693 of 2025 filed in the Islamabad High Court by Zia Chishti. SHC restrains Zia Chishti, wife from transferring shares of TRG Pakistan: notice In both writ petitions, Chishti had sought to suspend ad-interim orders of the Civil Judge in Lahore and Islamabad dated December 2, 2024, December 10, 2024, and February 11, 2025, respectively, that restrained the company in respect of its board elections. 'On April 8, 2025 the Honorable Islamabad High Court judge was pleased to dismiss Writ Petition 693 of 2025 and on April 11, 2025, the Honorable Lahore High Court judge was pleased to dismiss Writ Petitions 3383 and 3395 of 2025,' the notice read.
