Pak Suzuki Plans Delisting from Pakistan Stock Exchange

Jawad

04 Dec 2023

292

Pak Suzuki Plans Delisting from Pakistan Stock Exchange

Pak Suzuki Motor Company Limited (PSMC) officially communicated its request for delisting from the Pakistan Stock Exchange (PSX) in a stock filing on Monday. The submission, made under regulation 5.16.1 of the PSX Rule Book, seeks approval for the delisting and the acquisition of shares from minority shareholders, according to the statement.

Majority shareholder Suzuki Motor Corporation (SMC) from Japan aims to purchase 22,145,760 ordinary shares (26.91 percent) of the company's paid-up share capital from minority shareholders at a minimum price of Rs. 406 per share. The proposed minimum purchase price adheres to the regulations outlined in PSX Rule Book's regulation 5.14.1. Arif Habib Limited has been designated as the Purchase Agent for this transaction, with PSMC having paid an application fee of Rs. 500,000 as specified by the PSX Rule Book.

The decision to delist stems from SMC's objective to attain full ownership of Pak Suzuki by acquiring all outstanding shares and securities held by minority shareholders. The company has reported losses in 2019, 2020, and 2022, with ongoing losses recorded up to the third quarter of the current financial year (2023). Notably, dividends haven't been distributed to shareholders since 2019, except for 2021. Given these financial challenges, the Sponsors believe that offering minority shareholders a fair exit opportunity is their responsibility, enabling them to redirect their investments towards more profitable avenues.

It's important to highlight that Pak Suzuki has an authorized share capital of Rs. 5 billion, divided into 500 million ordinary shares of Rs. 10 each. Currently, 82.29 million ordinary shares, amounting to Rs. 822.99 million, have been issued and are fully paid up. Additionally, the shares of the company are eligible for the Central Depository System of the Central Depository Company of Pakistan.

Pak Suzuki Pak Suzuki Motor Pak Suzuki News Pak Suzuki Delisting Pakistan Stock Exchange Pak Suzuki Financial Challenges

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