Shareholders of Pak Suzuki Motor Company Limited (PSX: PSMC) have authorized the automobile assembler’s major shareholder Suzuki Motor Corporation (SMC), Japan, to buy back 22.14 million shares of the company at Rs. 609 per share, according to a stock filing at the main bourse on Monday.
“The majority shareholder is required to purchase at least 13,915,775 ordinary shares (62.84%) out of the total 22,145,760 ordinary shares outstanding with the shareholders other than majority shareholder, to qualify for delisting as approved by the VDC of the PSX,” it said.
The shareholders further resolved that the company be delisted from the PSX under the Voluntary Delisting Regulations of the PSX upon fulfillment of all applicable regulatory requirements.
The company authorized any two of the company executives, i.e., Toshiyuki Ikuma (Chief Financial Officer), Hiroshi Kawamura (Chief Executive Officer), and Abdul Nasir (Company Secretary) to sign, execute and deliver any document, and to do any other act, deed or thing for and on behalf of the PSMC required to complete the delisting of the company form the PSX.
This comes just a week after 15.39 percent of shareholders of PSMC rejected the offer to delist the company and threatened legal action. They said in a letter at the time that the proposed delisting and “that too at an artificially low price seems to be an attempt on the part of the management/holding company to escape accountability and take advantage of their wrongdoing, at the cost of the minority shareholders”.
On October 19, 2023, the PSMC Board of Directors decided to delist the company from PSX.