Disclosure reveals stake transfer resulted from loan collateral enforcement rather than a market transaction
TRG Pakistan Limited said on Monday that a 14.92% stake recently acquired by JS Bank Limited originated from shares pledged by former TRG founder Zia Chishti as collateral against a personal loan, shedding light on one of the largest recent share transfers in the company.
In a notice submitted to the Pakistan Stock Exchange (PSX), TRG Pakistan disclosed that JS Bank acquired 81.36 million shares, representing 14.92% of the company’s outstanding shares, through the enforcement of security on May 21, 2026.
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The disclosure was made pursuant to Section 96 and Section 109(2) of the Securities Act, 2015, relating to the substantial acquisition of voting shares.
According to information provided by The Resource Group International Limited (TRGI), an associate of TRG Pakistan, the shares had been held by Zia Chishti before the transfer.
TRGI stated that during enforcement proceedings in a United States court last week, Chishti confirmed under oath that the shares were removed from his account after JS Bank exercised its rights over collateral pledged in connection with a personal loan.
The disclosure clarifies that the acquisition was not the result of a market purchase but stemmed from the enforcement of a lending arrangement between the parties.
TRGI further stated that it reserves all rights concerning the legality of the transfer. The company referred to an arbitration award obtained in its favor in the United States in early 2025, indicating that legal disputes related to the ownership and transfer of the shares may remain unresolved.
TRG Pakistan also noted that it has not yet received the mandatory disclosure from Zia Chishti regarding the transaction, despite reporting obligations under applicable securities laws.
The transfer has significantly altered the shareholding structure of TRG Pakistan, positioning JS Bank as a major shareholder through the enforcement action, while reducing holdings associated with Chishti.
Market participants are expected to closely monitor further developments, as the transaction could have implications for future control dynamics and ongoing legal proceedings involving one of Pakistan’s most closely watched technology investment companies.
