Pak Suzuki Agrees Rs 609 per Share Buyback Price

Suzuki Motor Corporation (SMC), the parent company of Pak Suzuki Motor Company Ltd, has agreed to purchase the ordinary shares of PSMCL at a buyback price of Rs 609 per share for delisting.

In a stock filing, the company said that the above deal is subject to the purchase of at least 13,915,775 ordinary shares (62.84%) out of 21,145,760 ordinary shares outstanding with the shareholders other than minority shareholders to qualify for delisting as approved by the Voluntary Delisting Committee (VDC) of the Pakistan Stock Exchange. Bear in mind earlier this week, the VDC of the PSX had decided to determine the minimum buyback price of Rs 609 per share as against Rs 406 offered earlier by PSMCL for delisting.

The leading auto assembler had cited multiple reasons for delisting which include the intention of the sponsor and majority shareholder, SMC to obtain full ownership of the company by purchasing all outstanding shares held by minority shareholders to increase ownership and to consider delisting of the company from PSX.

The company, however, rebukes the news regarding its exit from the market. According to a company statement, within Suzuki’s global strategy, Pakistan remains one of the most important markets and the Japanese automaker is convinced of the future potential of Pakistan. The delisting, however, has set a new trend in the market as feared by analysts before. Johnson and Phillips Pakistan Ltd has also recently announced to delist from the PSX upon completion of all regulatory requirements.

Source: Dawn