https://www.pakwheels.com/blog/suzuki-motor-corp-to-acquire-back-psmc-shares/
Suzuki Motor Corp To Acquire Back PSMC Shares
It includes an update which happened on Thu 18th Jan, regarding “The sponsor of PSMCL is required to convey its acceptance of the purchase price determined by the PSX committee within 10 days.”

The update is that “The announcement was made through a notice to the Pakistan Stock Exchange (PSX) on Thursday, where SMC conveyed its acceptance under PSX Regulation No. 5.14.7.”

After the facts, the article quickly turns into a corporate speak “Suzuki Motor Corporation’s buyback decision marks a crucial step in reshaping the dynamics of its subsidiary, PSMC, and reflects the company’s commitment to addressing financial challenges and optimizing its position in the market.”

Why did PWB choose to word its last paragraph as a PR campaign using typical meaningless corporate terminology “crucial step”, “company’s commitment”, “addressing challenges”, “optimizing its position”? That article isn’t marked “PAID PARTNERSHIP” like the many others. These words aren’t even typical SEO words.

12-Oct-2023: https://carspiritpk.com/pak-suzuki-to-consider-delisting-from-psx/
20-Oct-2023: https://carspiritpk.com/pak-suzuki-delists-from-psx-smc-take-full-control/
04-Dec-2023: https://carspiritpk.com/smc-to-buy-pak-suzukis-26-91-minority-shares/
06-Dec-2023: https://carspiritpk.com/suzuki-sets-price-at-rs406-for-share-buyback/
16-Jan-2024: https://carspiritpk.com/pak-suzuki-buyback-price-fixed-at-rs-609/ (this very article)

It had been lurking around 150 the whole year, going as low as 82 and then shot up to 918 in the past 2 months. Today’s close was at 716.51. There’s some serious market gaming going on from insiders. Those who bought it in 200-300 are going to rake in some moolah.

Despite the poor performance of the stock exchange mentioned in the related articles, right now it is breaking all records by going above 60,000. Do those arguments make any sense now? Are they still valid and relevant? As far as I remember, PSMC was always hovering between 100-350 and now is priced the highest-ever it was in history. Does it make sense for SMC to buy it back now? At this price, they could be going for an SPO (Second Public Offering) and be able to raise much more capital than before.
The fact the PSX cold-heartedly removed an automotive company from the KSE index is indicative of the importance given to the transportation by our society. This triggered the buyback and the whole nation will suffer due to the reduction in transparency as a result.

Well let’s see, PSMC may feel disincentivized to pay this high price (609 vs the 406 they wanted to offer) and may deicde to continue to stay on the stock exchange.