Pak Suzuki Motor Company Limited (PSX: PSMC) on Thursday decided to delist from the Pakistan Stock Exchange (PSX).
According to a stock filing, the Board of Directors of PSMC has resolved to delist the Company from PSX for which the Company shall submit a formal application to the main bourse.
Suzuki Motor Corporation, the majority shareholder of the Company has been authorized to buy back ordinary shares held by the minority shareholders of the Company to an extent and at a price to be determined in accordance with the regulations or as may be determined by the PSX or the Securities Exchange Commission of Pakistan for the purposes of voluntary Delisting of the Company from the PSX, the filing added.
Suzuki Motor Corporation intends to obtain full ownership of PSMC by purchasing all outstanding shares and securities held by other shareholders in order to increase ownership and to consider the delisting of the Company from PSX.
PSMC gave the following reasons for delisting:
- The operations of Pak Suzuki resulted in losses in 2019, 2020, and 2022. It has also resulted in a loss up to the 3rd quarter of this year.
- From 2019, dividends have not been paid to shareholders except for 2021.
- The current share price of Pak Suzuki is at a historically low level and the number of daily transactions/sales are limited.
PSMC will make a formal application to the PSX for the delisting of the shares of the Company. Upon acceptance of the application for delisting its shares, a general meeting of the shareholders of the Company shall be convened and held within 30 days of agreement with PSX on the minimum purchase price to seek approval through a special resolution for the delisting process.
This comes just a week after the Board of Directors of PSMC resolved to consider the majority shareholder’s intent to purchase all outstanding shares of the company.
At the time of filing, PSMC’s scrip at the bourse was Rs. 205.94, up 7.5 percent or Rs. 14.37 with a turnover of 672,582 shares on Thursday.