Wyeth Pakistan Limited, one of the leading pharmaceutical companies in Pakistan having an association with a US-based group, has planned its delisting from Pakistan Stock Exchange (PSX).
The decision was taken by shareholders of the company who passed a special resolution for delisting of the company from the PSX at an extraordinary general meeting held recently. The delisting will likely be completed by next year, once the company has gone through different phases including approvals from regulatory authorities.
In the first phase, Wyeth LLC, USA., the majority shareholder company of Wyeth Pakistan Limited has planned to enhance its stakes in Pakistan’s operations through acquiring a minor shareholding in Wyeth Pakistan Limited barring those held by its wholly-owned subsidiary, Wyeth Holdings Corporation, US.
Wyeth LLC, USA holds 40.55 percent shares and Wyeth Holding Corporation holds 31.55 percent shares in Wyeth Pakistan Limited, thus the group’s total shareholding stands at 72.10 percent.
According to a stock filing, Wyeth LLC, USA is offering to buy the shares of the Company at a price of Rs. 2,000 per share. This purchase price has also been approved by the PSX in accordance with its regulations.
The share purchase offer will be valid from December 27, 2021 to February 25, 2022 both days inclusive. Shareholders including individuals and corporations will sell their shares to the company at the agreed share price. After this period, it is intended that the company will be delisted from the PSX.
This offer is valid for all shareholders of the company i.e. shareholders holding physical share certificates and shareholders whose shares are held as book-entry security in the Central Depository System of the Central Depository Company of Pakistan Limited (CDC).
Shareholders holding physical shares need to send (by either registered mail or courier service) or personally take the required documents to the authorized Purchase Agent, Arif Habib Limited. Payment to the shareholders will be made within three weeks of the date of issuance of the receipt.
For shareholders whose shares are held as book-entry security in the Central Depository System, the Purchase Agent would purchase the shares through Karachi Automated Trading System (KATS). Payment to sellers will be made as per the Clearing Schedule notified by the Pakistan Stock Exchange, the stock filing said.
Wyeth Pakistan Limited is engaged in the import, marketing, distribution and sale of research-based ethical specialties and other pharmaceutical products.
Pfizer Inc. is the ultimate parent of the Company. Wyeth LLC, USA and Wyeth Holding Corporation USA, which are subsidiaries of Pfizer Inc., are the principal shareholders of the Company.
In 2017, the company made a handsome profit of Rs. 980 million. In the very next year, the company posted a loss of Rs. 11 million. It regained the profitability of Rs. 23 million in 2019 but posted a huge loss of Rs. 131 million in 2020.
The huge losses last year were due to the Covid-19 restrictions which badly hurt its operations and sales of pharmaceutical products. The depreciation of the Rupee against the Dollar coupled with a high cost of energy also added to the cost of operations manifolds, the company’s annual report said.
