Pak Suzuki Motor Company Limited (PSMC) has submitted a formal request to delist from the Pakistan Stock Exchange, the automaker informed the bourse on Monday.
“We are pleased to submit herewith a formal application under regulation 5.16.1 of the PSX Rule Book with the request to delist the Company and approve the purchase of shares from the minority shareholders of the Company under the Regulations,” the stock filing stated.
Suzuki Motor Corporation (SMC) Japan, the majority shareholder proposes to purchase 22,145,760 ordinary shares (26.91 percent) of the paid-up share capital of the Company held by the minority shareholders at a minimum purchase price of Rs. 406 per share. The proposed minimum purchase price has been determined following the requirements of the regulation 5.14.1 of PSX Rule Book, the filing added.
Arif Habib Limited has been appointed as the Purchase Agent for the proposed transaction. PSMC has paid Rs. 500,000 on account of the application fee as specified by the PSX Rule Book.
Reasons for Delisting
- The Sponsor and majority shareholder SMC intends to obtain full ownership of the Company by purchasing all outstanding shares and securities held by minority shareholders to increase ownership and consider the delisting of the Company from PSX.
- The operations of Pak Suzuki resulted in losses in 2019, 2020, and 2022. It has also resulted in a loss up to the 3rd quarter of this financial year i.e. 2023.
- From 2019, dividends have not been paid to shareholders except for 2021. Therefore, the Sponsors of the Company believe that it is their responsibility to offer the minority shareholders a fair opportunity to exit so that they can make the best use of their investment in other profitable avenues, the filing added.
Notably, the company has an authorized share capital of Rs. 5 billion divided into 500 million ordinary shares of Rs. 10 each of which 82.29 million ordinary shares of an aggregate nominal value of Rs. 822.99 million are issued and fully paid up. The shares of the Company are eligible for the Central Depository System of the Central Depository Company of Pakistan.