Pak Suzuki Motor Company Limited (PSMC) has formally requested to be delisted from the Pakistan Stock Exchange (PSX), as disclosed in a filing to the bourse on Monday.
The majority shareholder, Suzuki Motor Corporation (SMC) Japan, intends to acquire 26.91 percent of PSMC’s shares held by minority shareholders, totaling 22,145,760 ordinary shares.
The proposed minimum purchase price is set at Rs. 406 per share, meeting the regulatory requirements.
Arif Habib Limited will serve as the Purchase Agent for the transaction, for which PSMC has paid the required Rs. 500,000 application fee according to PSX Rule Book.
The primary reasons for delisting include SMC’s aim to achieve full ownership by purchasing all outstanding shares from minority shareholders.
PSMC has incurred losses in 2019, 2020, and 2022, with continued losses in the third quarter of the current fiscal year (2023). Dividends have not been paid to shareholders since 2019, except in 2021.
The sponsors believe that offering minority shareholders a fair exit opportunity is necessary for them to explore more profitable investment avenues.
It’s worth noting that PSMC 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 with an aggregate nominal value of Rs. 822.99 million are issued and fully paid up.
The shares are eligible for the Central Depository System of the Central Depository Company of Pakistan.