Johnson & Phillips Pakistan Begins Process to Delist from PSX

Johnson & Phillips (Pakistan) Limited (PSX: JOPP) has submitted a formal application with the request to delist the company and approve the purchase of shares from all minority shareholders of JOPP, the company informed the Pakistan Stock Exchange (PSX) on Wednesday.

This comes after the board of directors of JOPP in July decided to delist the company from the main board. Adam Securities Limited has been appointed as the Purchase Agent, according to the filing.

The Company has an authorized share capital of Rs. 80,000,000 divided into 8,000,000 ordinary shares of Rs. 10 each out of which the paid-up capital of the Company is Rs. 54,499,720 divided into 5,449,972 ordinary shares of Rs. 10 each.

JOPP’s majority shareholder Muhammad Anis Mianoor has proposed to purchase 545,983 ordinary shares of the Company held by minority shareholders at a proposed purchase price of Rs. 35 per share subject to the approval of PSX and compliance with the applicable Rules.

In its notice to PSX, the company also highlighted a number of reasons for its decision for delisting. They include:

1. The ever-increasing compliance requirements coupled with the administrative costs of running the Company in order to maintain the listing status is too high.
2. The current economic situation of the country has made it extremely difficult for the Sponsors to manage the affairs of the Company as a listed Company.
3. The Company is no longer a manufacturing concern and is only engaged in trading, which too is getting extremely difficult given the fluctuations in currency.
4. The size of the Company (or the market cap) is very small compared to other listed companies and therefore the listing status is no longer justified.
5. The majority of the shares of the Company are held by the Sponsor and his family members and the trading in the Company’s shares is nominal.

In view of these reasons, Johnson & Phillips Pakistan has decided that the best course of action for all stakeholders is to proceed with voluntary delisting from the PSX and buy back the shares from minority shareholders. JOPP has requested PSX to expedite its application for delisting and purchase of shares from minority shareholders.

JOPP is principally engaged in the manufacturing, installation, and selling of electrical equipment. The company’s scrip at the bourse closed at Rs. 105.9, down by 0.09 percent or Rs. 0.10 with a turnover of 3,000 shares on Wednesday.