SECP asked to reverse ‘hostile takeover’ of Ecopack

Minority shareholders of Ecopack Ltd — a listed company that makes plastic bottles for beverage firms — have sought the intervention of the Securities and Exchange Commission of Pakistan (SECP) to protect the entity from hostile and allegedly illegal takeover by a group of seven investors. The seven acquirers “acted in concert” to accumulate over 50 per cent shareholding within a few months without making any regulatory disclosures or tender offer to small investors, according to the minority shareholders. The hostile takeover attempt culminated on Oct 28, 2022 when four individuals gained control of the company by getting elected to the board of directors. As a result, Kamran Nasir, who served as CEO of JS Global Capital Ltd until September 2022, became chairman of Ecopack Ltd. The pattern of shareholding shows that the group of seven investors collectively held just 1.28pc shares in the company until February 28, 2022. But their shareholding increased to 36.9pc within the next one month. They kept on accumulating shares from the stock market and crossed the 50pc threshold by June 30, 2022.