Engro Chemicals to set up new fertiliser plant

Engro Chemicals Private Limited on Monday offered Rs101 million as bid for allocation of 100 million cubic feet per day (mmcfd) gas for setting up a new fertilizer plant near Qadirpur gasfield.

Minister for Industries and Production Jehangir Khan Tareen and Secretary Industries Shahab Khawaja also witnessed the bidding, says a press release. Speaking on the occasion Tareen said that bidding was held in a transparent manner in which four parties including two foreign companies had shown interest.

Is Your Dividend At Risk?

Dividend cuts can surprise investors, even the big players. But that doesn’t mean it’s impossible to know ahead of time whether your dividend is at risk of being reduced. There are several factors that can indicate how safe your dividend income is.

Unlike safe investments such as bank deposits or Treasury bonds, dividends are not guaranteed. If a company runs into a cash crunch, cutting or eliminating dividend payment is one way it can try to save itself, but such action can send the wrong signals to the market. Even safe-haven companies can become dividend investment sinkholes.

NIB Bank buys PICIC in $300m deal

In what is being seen as a major move in the banking sector, the NIB Bank Limited informed the KSE that it had reached an agreement in principle with certain shareholders of PICIC DFI for the acquisition of their respective shareholding in this entity.

In a deal that analysts put at $300 million, it is proposed that NIB Bank will merge with PICIC DFI and its subsidiary, the PICIC Commercial Bank Ltd, making it the largest non privatised private sector bank in Pakistan – with a balance sheet of about Rs150 billion.

Understanding Rights Issues

Cash-strapped companies can turn to rights issues to raise money when they really need it. In these rights offerings, companies grant shareholders a chance to buy new shares at a discount to the current trading price. Let’s look at how rights issue work, and what they mean for all shareholders.

Defining a Rights Issue and Why It’s Used

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. More specifically, this type of issue gives existing shareholders securities called “rights”, which, well, give the shareholders the right to purchase new shares at a discount to the market price on a stated future date. The company is giving shareholders a chance to increase their exposure to the stock at a discount price.

PC invites EoIs for Hazara Phosphate

The Privatisation Commission (PC) has invited Expressions of Interest (EoIs) for the sale of 90 per cent shares in Hazara Phosphate Fertilisers Ltd (HPFL).

The EoIs have been invited from prospective investors (eg fertilizer companies, industrial companies and groups, investors/ consortium of investors who can show their ability to efficiently manage and operate the company).

All parties submitting EoIs would be sent SoQs for response, which shall form the basis of pre-qualification.

KSE elects directors

The annual election of Karachi Stock Exchange (KSE) for the calendar year 2007 fetched record 173 votes on Thursday. There were 200 listed voters or members of KSE, The News learnt.

Election for the five positions of directors out of seven candidates was held under the Articles of the Exchange.

In their individual capacities, Shehzad Chamdia clinched the highest 150 votes, followed by Dawood Jan Muhammad, who acquired 133 votes.

Haji Ghani Haji Usman got the third biggest number of 124 votes.

Muhammad Shoaib Memon and Sikandar Esmail Bagasrawala received 114 votes and 112 votes respectively and simultaneously filled all five positions of directors.

LSE starts OGDC trading

Oil & Gas Development Company Ltd (OGDCL) started unconditional trading of its Global Depositary Shares (GDS) at London Stock Exchange on Wednesday. Since December 1, therefore, OGDCL GDS were being traded on conditional basis, it was learnt.

The offer price was US$18.90 per GDS at LSE, while each GDS represents 10 ordinary shares in the Pakistani equity markets. Based on the offer price, the market capitalisation of OGDCL now stands approximately at US$8 billion.

The Get-Rich-Slow Scheme

American society is more cutthroat than ever, and it takes not only great skill and smarts to get ahead, but often a willingness to cut corners, says David Callahan, a PhD and author of The Cheating Culture. “How do you get rich slow when you need $600,000 to buy an entry-level house in Westchester?” asks Callahan.

The truth is it’s a lot easier to get rich — and stay rich — today by going it slow rather than latching onto a get-rich-quick scheme. Best-seller lists are clogged with books that explain in great detail how to Start Late, Finish Rich, or become The Millionaire Next Door. But much of the advice boils down to some pretty simple rules to live by. Here are five steps to slowly gaining the kind of financial security most people only dream of:

OGDCL GDS eats away scrips value on home ground

Equity experts questioning the success OGDCL Global Depository Shares (GDS) have observed that the price fixation issue has resulted in reducing its weightage by more than three per cent at Karachi bourse.

The index mover OGDCL saw its value clipped from November 15 to 30 at the same time when Government of Pakistan was holding road shows to make GDS issuing success in the international markets.

The scrip was carrying approximately 23 per cent weightage in KSE 100-share Index before the issue of indemnification between the Company (OGDCL) officials and Government officials was highlighted in press on November 10, 2006, they said.

Betting the Ranch: Risking Your Home to Buy Securities

With a rising stock market, record low interest rates, and large gains in home value, some investors have taken out new mortgages, refinanced, or obtained line-of-credits secured by their homes for the specific purpose of investing in securities. The hope is that the investment will not only pay the mortgage, but also generate additional income. Unfortunately, it doesn’t always work out that way.

Investors who must rely on investment returns to make their mortgage payments could end up defaulting on their home loans if their investments decline and they are unable to meet their monthly mortgage payments. In short, investors who bet the ranch could lose it.