Pak Suzuki announces delisting from PSX
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KARACHI: A known car manufacturing company of Pakistan, Pak Suzuki Motor Company Limited Monday announced to delist from the Pakistan Stock Exchange.
According to the notification of the company at PSX website, the company announced that it will buy back all its shares from the minorities shareholders.
On October 19, 2023, the company had said, “we have conveyed you the intention of the majority shareholder to buy back 22,145,760 ordinary shares comprising of 26.91% of the total paid up share capital of Pak Suzuki Motor Company Limited (“Pak Suzuki” or the “Company”) and the decision of the Board of Directors of the Company to delist the Company from PSX under regulation 5.14 of the PSX Rule Book —Voluntary Delisting Regulations (the “Regulation”).”
the Company has an authorized share capital of Rs 5,000,000,000 (Pak Rupees Five Billion) divided into 500,000,000 ordinary shares of Rs 10 each of which 82,299,851 ordinary shares of the aggregate nominal value of Rs 822,998,510 are issued and fully paid up.
The shares of the company are eligible for the purposes of Central Depository System of the Central Depository Company of Pakistan.”
The company’s reasons for the delisting from PSX are, “The Sponsor and majority shareholder, Suzuki Motor Corporation, Japan (“SMC” or “Sponsor”) intends to obtain full ownership of the “Company by purchasing all outstanding shares and securities held by minority shareholders, in order to increase ownership and to consider the delisting of the company from PSX.
2nd reason is the operations of Pak Suzuki resulted in losses in 2019, 2020, and 2022. It has also resulted in a lost up to the 3rd quarter of this financial year i.e 2023.
3rd reason is, from 2019, dividends have not been paid to shareholders except for 2021.
4th reason is that the sponsors of the company believe that it is their responsibility to offer the minority shareholders a fair opportunity to exit so that they can make the best use of their investment in other profitable avenues.
In this connection, the company has appointed Arif Habib limited as the purchase agent.
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