PSMC agrees to buy-back 62.84% stake at delisting committee’s determined price

January 18, 2024 (MLN): Suzuki Motor Corporation (SMC), as the majority shareholder, has agreed to repurchase a 62.84% shareholding in Pak Suzuki Motor Company Limited (PSX: PSMC) at a buy-back price of Rs609 per share as determined by the Voluntary Delisting Committee (VDC), company's filing on local bourse revealed today.

However, this buy-back offer is contingent upon acquiring a minimum of 13.915 million ordinary shares of the total outstanding shares of 22.145m outstanding with shareholders other than the Majority Shareholders.

Moving forward under the delisting process, it is crucial to observe whether minority shareholders will consent to sell their stake at the agreed-upon price set by the company.

To recall, on October 19, 2023, the BoD resolved to delist the company from PSX. 

Considering this, 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 under the regulations or as may be determined by the PSX or the Securities Exchange Commission of Pakistan (SECP).

On October 12, 2023, the majority shareholders of PSMC expressed their intent to purchase all outstanding shares of PSMC and potentially de-list the company.

It is worth mentioning that an investor, Nadeem Nisar on Tuesday formally informed the company's management regarding his increase in ownership stake, surpassing the 10% threshold of the total issued, subscribed, and paid-up shares.

This change in shareholding has been carried out in strict adherence to the regulations and guidelines established by the SECP and other relevant authorities.

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