The Securities and Exchange Commission of Pakistan (SECP) has allowed Pak Suzuki Motor Company Limited (PSX: PSMC) to hold its upcoming election of directors within 90 days from the due date i.e. by May 7, 2024, the automaker informed the Pakistan Stock Exchange on Wednesday.
The term of the current elected director’s term will expire on February 06, 2024. Due to the ongoing voluntary delisting process of the company, the company has applied to the Securities and Exchange Commission of Pakistan (SECP) for an extension in the election of directors. Therefore, directors of the company filed an Impediment Report under section 158 (2) of the Companies Act, 2017,” the stock filing stated.
The filing added, “In this regard, SECP vide its letter number E-0010695/Com/2024/X3711 dated 02.01.2024 has allowed the company to hold its upcoming election of directors within ninety (90) days from the due date thereof, i.e., election of directors needs to be held by May 7, 2024”.
Notably, PSMC formally submitted a request in December 2023 to delist from the PSX.
An earlier filing revealed 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 PSX rules.
Why Delist?
- 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.
PSMC is engaged in the assembling, progressive manufacturing, and marketing of Suzuki cars, pickups, vans, 4x4s, motorcycles, and related spare parts.
