Between a sugar mill and shareholders

Unpacking the complex legal saga behind the 3.45 acres land owned by Mirpurkhas Sugar Mills

On the main Hyderabad road, Mirpurkhas, Sindh, is a piece of land that measures 3.45 acres. It lies in the main commercial area of the city and is estimated to be worth between PKR 300 million to 1,200 million. The property belongs to Mirpurkhas Sugar Mills Limited (MIRKS). In April 2021, the sugar mill tried to sell the land but what would have been a normal asset disposal turned into a legal battle involving some shareholders of the company, the Securities and Exchange Commission of Pakistan (SECP), and the sugar mill.

Some shareholders believed that the property was being undervalued by the company and the sale was being carried through non-transparent means. Soon after, the SECP got involved. After the company failed to satisfy the regulatory body, the SECP threatened to initiate an investigation into the sale of the property. But in October of last year, the sugar mill obtained a stay order from the Sindh High Court (SHC), effectively restraining the SECP from starting any formal investigation.

Profit tries to understand the complex tale of the legal battle between the two parties.

 

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Muhammad Raafay Khan
Muhammad Raafay Khan
Sector Analyst for Profit Magazine. Focus on corporates on the PSX. Can be reached at [email protected]

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