US arbitrator rejects ex-CEO’s bid to halt TRG Pakistan tender offer

KARACHI: A US arbitrator has rejected an attempt by Zia Chishti, former CEO of TRG Pakistan, to block Greentree Holdings Limited (GHL) from proceeding with its tender offer and to accelerate board elections at the company.

The ruling was disclosed in a regulatory filing by TRG Pakistan to the Pakistan Stock Exchange (PSX) on Monday.Chishti had filed a motion for a preliminary injunction on January 28, 2025, as part of an ongoing arbitration case in the US, seeking to prevent GHL from moving forward with its tender offer while simultaneously expediting board elections. However, in an order issued on February 28, 2025, the arbitrator dismissed the motion on both counts, according to TRG Pakistan.

The latest ruling follows an earlier setback for Chishti. On November 29, 2024, he had sought preliminary relief in the same arbitration to impose restrictions on GHL’s voting rights in a board election. That motion was also denied in a ruling dated December 9, 2024.

GHL, which currently holds a 29.7 per cent stake in TRG Pakistan, launched its tender offer on January 15 to acquire an additional 35.1 per cent stake. The book closure took place on February 21, with the tender scheduled to remain open from March 6 to March 12, 2025.

Meanwhile, in a separate arbitration involving TRG Pakistan’s associate company, The Resource Group International Limited (TRGIL), a partial final award issued in late January 2025 found that Chishti had “materially breached” a share purchase agreement by engaging in unauthorised pledges and sales of company shares. He was ordered to comply with the agreement’s provisions and cover TRGIL’s legal fees and arbitration costs.

In Pakistan, legal challenges continue to mount for Chishti. Last month, the Sindh High Court (SHC) barred him and his wife, Sarah Pobereskin, from selling or transferring their TRG Pakistan shares as multiple shareholders petitioned to delay the company’s board elections until the next hearing.