Pak Suzuki’s Majority Shareholder Accepts Asking Price to Delist Company From PSX

Suzuki Motor Corporation (SMC) Japan as the majority shareholder and sponsor of Pak Suzuki Motor Company Limited (PSX: PSMC) has accepted to purchase the Ordinary Shares of Pak Suzuki at a buy-back price of Rs. 609 per share, the automaker informed the Pakistan Stock Exchange on Thursday.

The proposed transaction will be subject to the purchase of at least 13.9 million Ordinary Shares (62.84 percent) out of the total 22.1 million Ordinary Shares outstanding with the shareholders other than the Majority Shareholder, to qualify for delisting as approved by the Voluntary Delisting Committee of the Exchange, the stock filing stated.

This comes after the Voluntary Delisting Committee of the main bourse recently determined the minimum buyback price of Rs. 609 per share for the voluntary delisting application of PSMC.

An earlier filing revealed SMC Japan, the majority shareholder proposed 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. Now, the minimum purchase price has been determined at Rs. 609 per share following PSX rules.

It bears mentioning that majority shareholder SMC intends to obtain full ownership of PSMC by purchasing all outstanding shares and securities held by minority shareholders to increase ownership.

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.

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ProPK Staff