Pak Suzuki Motor Company Limited (PSX: PSMC) on Thursday decided to delist from the Pakistan Stock Exchange (PSX).
According to a stock filing, the Board of Directors of PSMC has resolved to delist the Company from PSX for which the Company shall submit a formal application to the main bourse.
Suzuki Motor Corporation, the majority shareholder of the Company has been authorized to buy back ordinary shares held by the minority shareholders of the Company to an extent and at a price to be determined in accordance with the regulations or as may be determined by the PSX or the Securities Exchange Commission of Pakistan for the purposes of voluntary Delisting of the Company from the PSX, the filing added.
Suzuki Motor Corporation intends to obtain full ownership of PSMC by purchasing all outstanding shares and securities held by other shareholders in order to increase ownership and to consider the delisting of the Company from PSX.
PSMC gave the following reasons for delisting:
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 year.
From 2019, dividends have not been paid to shareholders except for 2021.
The current share price of Pak Suzuki is at a historically low level and the number of daily transactions/sales are limited.
“In view of the foregoing, the sponsor and majority shareholder, Suzuki Motor Corporation, intends to obtain full ownership of Pak Suzuki by purchasing all outstanding shares and securities held by minority shareholders, in order to increase ownership and delist the company from the PSX. Considering the unfavorable situation for minority shareholders, it would be beneficial for them to be offered a fair exit,” the notice said.
However, it added that within Suzuki’s global strategy, Pakistan remains one of the most important markets and the company is convinced of the future potential of Pakistan.
In a statement, issued later in the day, the company highlighted that Pak Suzuki is the pioneer of Automobile market in Pakistan and till now the market leaders. Even after delisting from PSX, the company will continue investment in Pakistan and ensure that Pak Suzuki will continue to serve its customers at their best, it added.
At the time of filing, PSMC’s scrip at the bourse was Rs. 205.94, up 7.5 percent or Rs. 14.37 with a turnover of 672,582 shares on Thursday.
Source: Pro Pakistani