Sindh High Court Extends TRG Pakistan Buyback Deadline, Tax Stakes Rise

The Sindh High Court decided on Wednesday that Greentree Holdings Limited, along with the manager handling the public offer for TRG Pakistan, can push the buyback offer’s acceptance period to April 15, 2025, if they opt to. Once that deadline hits, though, the court’s interim stay order kicks in, freezing things up. This follows an earlier stay that paused Greentree Holdings—a TRG International subsidiary—from taking over TRG Pakistan, sparked by legal and procedural hiccups. The court’s now insisting both sides keep everything as-is after the extended period ends.

The fight’s split two ways. TRG’s management is gunning to get the buyback rolling, challenging the stay to keep it alive, while opposing shareholders are digging in, saying the deal’s legality under Section 86(2) of the Companies Act 2017 needs sorting first. At PKR 75 per share—versus yesterday’s market price of PKR 65.14—the buyback’s a juicy short-term play, but the legal tangle could tank it if delays drag on or regulators jump in.

For tax law firms, this is prime turf. The buyback’s capital gains tax implications for shareholders—especially at that PKR 75 payout—demand sharp advice on timing and filings. Extending the offer keeps investor cash in the game, but any collapse could trigger tax loss strategies. The court’s April 7, 2025, hearing locks in a no-move zone—no share shifts, asset deals, or governance tweaks—leaving TRG and Greentree in limbo, amplifying the need for tax planning around stalled corporate actions.

TRG’s pushing the deadline to hold investor trust and soften the blow of uncertainty, while the case shapes up as a corporate law benchmark. Tax pros can lean in now—whether it’s navigating buyback gains, prepping for a bust, or eyeing regulatory fallout, this one’s a slow burn with big stakes.