IBEX buys back 3.56m shares for $70m from TRGI

KARACHI: IBEX Limited, a US-based technology company, has repurchased approximately 3.56 million shares for $70 million from its associate company, The Resource Group International (TRGI).

The development was disclosed by TRG Pakistan Limited (TRG), an associate of TRGI, in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“TRG Pakistan Limited has been informed that its associate, The Resource Group International Limited (TRGI), has entered into a definitive agreement with its portfolio company, IBEX Limited (IBEX), under which IBEX has repurchased approximately 3.56 million IBEX shares from TRGI,” read the notice.

The transaction, valued at $70 million, consists of $45 million in cash and $25 million in seller financing. The purchase price was set at $19.65 per share, representing both the last closing price before the deal’s announcement and the five-day volume-weighted average trading price for IBEX shares on the Nasdaq Global Market as of the transaction signing.

Following the repurchase, TRGI will retain ownership of 1.8 million common shares in IBEX, while its shareholder agreement with IBEX, established in November 2017, remains in effect. However, TRGI is no longer a controlling shareholder.

“Additionally, IBEX will have the right to repurchase the remaining shares owned by TRGI within four years, subject to certain conditions,” the notice stated.

TRG Pakistan also revealed that Houlihan Lokey served as the financial advisor to TRGI for this transaction.

According to TRG Pakistan’s latest financial results for the fiscal year ended June 30, 2024, the company incurred a loss after tax of Rs30.8 billion, equivalent to Rs56 per share.