Pak Suzuki Motor Company (PSMC) has set a minimum price of Rs 406 per share for buying back its shares held by minority shareholders to get delisted from the Pakistan Stock Exchange (PSX). Based on the company’s price, the PSX would now determine the buyback price, which would not be lower than the minimum price set by PSMC, Topline Research said.
PSMC, the assemblers of Suzuki cars, has clarified earlier that the delisting from the stock market does not mean it will pull out of Pakistan. For the company, the country has remained an important market. In a notification to the PSX, PSMC said:
“SMC (Suzuki Motor Corporation, Japan), the majority shareholder, proposes to purchase 22.14 million ordinary shares, 26.91% of the paid-up capital, of the company held by the minority shareholders at a minimum purchase price of Rs406 per share.”
The Japan-based majority shareholder intends to obtain full ownership of the company by purchasing all outstanding shares and securities held by minority shareholders to increase ownership and to consider delisting the company from the PSX. Sponsors of the company believe that it is their responsibility to offer minority shareholders a fair opportunity to exit so that they can make the best use of their investment in other profitable avenues.
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