Philip Morris (Pakistan) Limited (PMPKL), an affiliate of Philip Morris International (PMI), has decided to purchase all the shares of the company and voluntary delist from the Pakistan Stock Exchange (PSX).
The listed company shared the development in its notice to the bourse on Wednesday.
“The board of the company resolved to delist the company from the exchange under rule 5.14 of Voluntary Delisting rules of the PSX Rule Book for which the company shall submit a formal application to the exchange and for which Philip Morris Investments B.V., the majority shareholder and one of the sponsors of the company has been authorized to buyback ordinary shares held by the minority shareholders of the company other than Philip Morris Brands SARL (the other sponsor, who will continue to hold securities and shares in the de-listed entity) to an extent and at a price to be determined in accordance with the PSX Rule Book or as may be determined by the exchange or the Securities & Exchange Commission of Pakistan for the purpose of voluntary delisting of the company from the exchange,” read the notice.
Johnson & Phillips Pakistan to delist from PSX
PMI, the ultimate shareholder of PMPKL, holds 97.65% of the shareholding through its subsidiaries, Philip Morris Investments B.V. (PMIBV) and Philip Morris Brands SARL (PMBS).
The company informed that PMIBV intends to increase its ownership of the company by purchasing all outstanding shares and securities held by shareholders other than PMBS, for the company’s delisting from PSX.
The company was of the view that the delisting would provide an opportunity for exit to those shareholders who wish to liquidate their investments, at a competitive price. Moreover, the purchase/buy-back of the company’s issued ordinary shares will improve its earnings per share.
Following the announcement, the share price of Philip Morris (Pakistan) surged Rs67.07 i.e. 10%, reaching Rs737.77 and hitting its upper lock on the PSX.
The company is engaged in the manufacturing and sale of cigarettes and tobacco products.
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