Friday, May 24, 2024

Pak Suzuki Announces to Delist from Pakistan Stock Exchange (PSX) Citing Losses, Low Valuation

Pak Suzuki Motor Company (PSMC) has disclosed its intention to acquire all the remaining shares of the company and remove itself from the Pakistan Stock Exchange (PSX). The decision was made during a meeting of the Board of Directors to discuss voluntary delisting under PSX Rule Book’s section 5.14, Voluntary Delisting rules.

The company’s board has resolved to proceed with the delisting under the Voluntary Delisting rules, and a formal application will be submitted to the PSX.

The primary shareholder has been granted the authority to repurchase ordinary shares held by minority shareholders, with the terms and price subject to regulatory compliance.

The decision to delist comes as PSMC has faced persistent losses, minimal dividend payments, a historically low share price, and limited daily transactions and sales.

As a result, Suzuki Motor Corporation intends to obtain full ownership of Pak Suzuki by acquiring the outstanding shares and securities held by minority shareholders, ultimately leading to delisting.

The company has stressed its commitment to providing a fair exit option for minority shareholders during this process.

Despite this delisting decision, PSMC has reiterated the significance of Pakistan in Suzuki’s global strategy and expressed confidence in the country’s future potential.

The announcement has led to a rise in the company’s share price, which had been under pressure for an extended period.

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