The new cement plant of Gharibwal Cement Limited will be commissioned and ready for production by 2008. "It will then be in a position to begin payout of dividend to its shareholders", the Gharibwal Cement management informed the Karachi Stock Exchange (KSE) in response to a show-cause notice.
Replying to KSE’s show-cause notice, the company said it was unable to declare dividend or bonus shares during the past five years mainly due to critical factors confronting the company. Under the Listing Regulation No 32(1)(b) of the KSE, a listed company may be de-listed or suspended if it fails to declare dividend or bonus shares from the date of the declaration of last dividend or bonus.
In order to meet the equity portion of the cost of the next expansion project, the company has arranged and signed a syndicated term-finance agreement with leading financial institutions on September 9, 2005.