PSMC commences share purchase offer at Rs609/share before delisting from PSX

February 16, 2024 (MLN): In a significant development, the management of Pakistan Suzuki Motor Company (PSMC) has commenced its share purchase offer, effective from February 22, 2024, until April 21, 2024, the company's filing on PSX revealed today. 

After this period, it is intended that the Company will be delisted from the Pakistan Stock Exchange (PSX).

This offer extends to all existing shareholders of PSMC, marking a crucial phase in the company's trajectory.

While highlighting the set terms, conditions and procedures for the purchase of the shares of the company by Suzuki Motor Corporation, Japan, the notice added that Suzuki Motor Corporation, Japan is offering to buy the shares of the company for Rs609 per share.

The above-mentioned purchase price has also been approved by the Pakistan Stock Exchange Limited following its regulations.

This offer is valid for all shareholders of the company. Payment to the shareholders will be made within three weeks of the date of issuance of the receipt.

The Purchase Agent would purchase the shares through the trading system of PSX. Payment to sellers will be made as per the Clearing Schedule notified by the PSX.

It is important to mention that Suzuki Motor Corporation, Japan, the majority shareholder of PSMC decided to purchase all the shares of the company held by others other than those held by the Sponsor / Majority Shareholder. 

The shareholders of the company passed a special resolution for de-listing of the company from the Pakistan Stock Exchange at the Extraordinary General Meeting held on February 9, 2024, copy of the Special Resolution is being sent to the members separately.

It is pertinent to note that Investor Nadeem Nisar, who holds more than 10% shareholding in PSMC formally contested the delisting price of Pak Suzuki Motors shares, challenging its valuation and citing procedural irregularities.

Earlier this month, he issued a letter to the PSX and SECP in which he expressed deep concerns regarding valuation discrepancies and procedural lapses in the delisting process.

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