December 04, 2023 (MLN): The majority shareholders of Pak Suzuki Motor Company Limited (PSX: PSMC) have expressed their intention to repurchase 22,145,760 ordinary shares, constituting 26.91% of the total paid-up share capital of PSMC, company's filing on PSX revealed today.
To recall, the Board of Directors (BoD) of the company on October 19, resolved to delist the company from the local bourse.
Accordingly, a formal application under regulation 5.16.1 has been submitted, seeking approval for the delisting and share purchase from minority shareholders.
The majority shareholder, Suzuki Motor Corporation, Japan 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.
Pak Suzuki's operations incurred losses in 2019, 2020, and 2022, with ongoing losses recorded up to the third quarter of the current financial year (2023). Moreover, shareholders have not received dividends since 2019, except for the year 2021.
Therefore, 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.
The notice issued by the company further reveals that Arif Habib Limited has been appointed as the Purchase Agent.
The intrinsic value per share of the company is determined on the basis of the revaluation of fixed assets carried out by Iqbal A. Nanjee & Co. (Pvt.) Ltd. who are approved valuators by the Pakistan Banking Association and one of the valuators under PSX's approved valuators list.
The intrinsic value per share working, duly certified by the auditors of the company is attached hereto, as Annexure-D.
