[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Pak Suzuki Motor Company Limited (PSMC) has officially requested to be delisted from the Pakistan Stock Exchange, as confirmed in the company’s filing to the stock exchange on Monday.
The majority shareholder, Suzuki Motor Corporation (SMC) Japan, has proposed purchasing 26.91 percent of the paid-up share capital, totaling 22,145,760 ordinary shares, from minority shareholders. The minimum purchase price is set at Rs. 406 per share, following the regulations outlined in the PSX Rule Book.
Read more : Pak Suzuki Again Halts Motorcycle Production
Arif Habib Limited has been appointed as the Purchase Agent for this transaction, and Pak Suzuki Motor Company has paid an application fee of Rs. 500,000 as specified by the PSX Rule Book.
The primary reasons cited for the delisting include SMC’s intent to obtain full ownership of the company by acquiring all outstanding shares and securities held by minority shareholders. Additionally, Pak Suzuki’s operations have resulted in losses in 2019, 2020, and 2022, with a continued loss in the third quarter of the current financial year (2023). Dividends have not been paid to shareholders since 2019, except for 2021.
The sponsors of the company believe it is their responsibility to provide minority shareholders with a fair opportunity to exit, allowing them to make better use of their investments in more profitable avenues.
It’s noteworthy that Pak Suzuki Motor Company has an authorized share capital of Rs. 5 billion, divided into 500 million ordinary shares of Rs. 10 each, with 82.29 million ordinary shares issued and fully paid up. The shares are eligible for the Central Depository System of the Central Depository Company of Pakistan.[/vc_column_text][/vc_column][/vc_row]
