P&G exit: PSX sets Rs700 minimum buyback price for Gillette Pakistan delisting

After reviewing, the Voluntary Delisting Committee (VDC) of the Pakistan Stock Exchange (PSX) has rejected the Gillette Pakistan Limited (GLPL) sponsors’ proposed buyback price of Rs216.49 per share and instead set a much higher minimum buyback price of Rs700 per share for GLPL.

The decision was taken during a meeting of the VDC held on Monday, where the committee considered GLPL’s application for voluntary delisting from the bourse.

“The VDC held detailed discussions with the representatives of the sponsors, and after considering all relevant aspects under the applicable regulations, the committee decided to determine the minimum buyback price of Rs700/- per share against the offer of the sponsor of Rs216.49/- per share,” read the notice.

Last year in November, Gillette Pakistan Limited formally applied to the PSX for delisting and approval to purchase shares held by minority shareholders, proposing to purchase shares from public shareholders at Rs216.49 per share.

Its majority shareholder, Procter & Gamble (P&G) Company, which holds 91.72% of Gillette Pakistan’s shareholding through its subsidiary SABV, initiated the buyback process.

Procter & Gamble to exit Pakistan as part of global restructuring

“The proposed delisting is a consequence of P&G’s global efforts to accelerate growth and value creation; the company has decided to shift its business and operating model in Pakistan and transition to a third-party distributor model to continue to serve consumers.

“This means we will wind down the manufacturing and commercial activities of Gillette Pakistan Ltd. and serve consumers from our other operations in the region.

“Accordingly, the local subsidiary will cease its business operations, and the continuation of its listing on the PSX is no longer aligned with the parent’s global business strategy,” GLPL said back then.

Under the proposed plan, SABV intends to purchase 2,638,059 shares — approximately 8.28% of the company’s paid-up capital held by minority shareholders — at a minimum price of Rs216.49 per share.

However, the PSX’s latest intervention has substantially altered the economics of the proposed exit.

“The sponsors of GLPL are required to convey their acceptance/rejection of the purchase price determined by the exchange within ten (10) days under PSX Regulation 5.14.7. The voluntary delisting of the company is subject to the receipt of acceptance from the sponsors and the fulfilment of relevant requirements by the company.

“If the sponsors do not convey their acceptance to the purchase price determined by the exchange within the stipulated time under PSX Regulations, the voluntary delisting application shall stand withdrawn,” PSX added.