KARACHI, Aug 13: Sponsors of the Javed Omer Vohra & Company Limited (JOV & Co.) appears to have decided to quit the stock business, following sale of their controlling stake to ‘Crescent Standard Brokerage and Investment Services Limited’. A notice issued on Tuesday by another corporate member of the Lahore Stock Exchange— Dosslani’s Securities (Pvt) Limited — stated: “Our clients have entered into an agreement with sponsors of JOV for purchase of 7 million ordinary shares, i.e 35 per cent of the equity stake along with management control of the company.” It mentioned that the price per share for the transaction was Rs175 per share.

Mr. Javed Omer Vohra, the chairman/chief executive of stock brokerage firm, known to be an eternally private person even when he was rated among the top eight of the 200 members of the bourse, looks to have decided to seek a quiet exit. There hasn’t been a statement from the chairman or the company explaining the reason for moving out of what seems was a lucrative and flourishing business. Rumours doing the rounds suggest that the family has decided to move out of stocks into other fresh pastures, most likely textiles.

On Tuesday, the acquirers of JOVC, Crescent Standard Brokerage and Investment Services Limited and its Associates also made a public offer for 0.2 million shares of the target company at the same price of Rs175 per share to all the remaining shareholders to the extent of 0.2 million shares, i.e 1 per cent of the equity. The transaction was entered into under the ‘Listed Companies (Substantial Acquision of voting shares and take-overs) Ordinance 2002’. The offer period for the buy-back of 0.2 million shares was up to and inclusive of August 31, while the cut-off date for shareholders eligible for the offer was set at Aug 11, 2005.

Another notice issued latter in the week, mentioned the names of the outgoing and incoming directors.

The stock brokerage firm was incorporated on June 22, 1993 and listed at the stock exchanges in 1994. Its paid-up capital, which stood at Rs40 million until the year 2000, was raised to Rs200 million by the issue of bonus shares at 150 per cent in 2003 and 100 per cent in 2004. Payouts to shareholders were robust: cash dividend at 250 per cent for 2004 along with 100 per cent bonus and an interim already paid at 150 per cent for 2005.

The price of the share in JOVC has plunged by as much as Rs100 or 60 per cent from Rs265.90 to Rs165.95 in 13 straight sessions since July 29. On eight of those trading days since Aug 3, the stock closed limit down to touch Rs157.70 on the last day on Friday. It is interesting to note that the stock has been relatively liquid with a volume of 6 million shares in seven months from January to July, but the price has been extraordinary volatile. It hit the lowest at Rs13.50 in 2001 and Rs958 in 2003. The notices issued by JOVC are not posted on the Karachi Stock Exchange’s website. And there is no official word from the bourse’s concerned committee whether the price offered to the remaining shareholders could have been brokered with the acquirers under the law and whether what has been offered is indeed a fair price.