Small investors urge SECP and PSX management to review AkzoNobel buy-back price
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KARACHI: The small investors and the brokers have urged the Securities and Exchange Commission of Pakistan (SECP) and the top management of Pakistan Stock Exchange (PSX) to thoroughly review and audit the buy-back price of AkzoNobel fixed by Delisting Committee on March 3, 2020.
The small investors want to know who has been benefited of the process and under which Regulations, the ‘Opening Price’ of AkzoNobel was changed to Rs 270 per share
According to some small investors, this is an open and shut case of price-manipulation and has analogy with UNILVER where an initial price of around Rs 8000 was revised to Rs 15000/= after a hue and cry from investors.
The view that bay-back price should be determined through revised book-building requires a due consideration in the best interest of Investor and Investment protection.
The Voluntary Delisting Committee of the PSX, in its meeting held March 3rd, 2020, has approved the minimum buy-back price of Rs 270 per share in reference to the voluntary delisting of AkzoNobel Pakistan Limited.
Moreover, the Committee has also determined the minimum quantum of purchase of at least 6,178,511 Ordinary Shares (i.e. 55%) out of the total 11,233,655 Ordinary Shares outstanding with the minority shareholders, to qualify for delisting.
In relation to Buy-back of shares and delisting, the committee asks to convey the acceptance of the Sponsor immediately.
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