AGL 23.40 Increased By ▲ 0.46 (2.01%)
AIRLINK 111.70 Increased By ▲ 0.41 (0.37%)
BOP 5.27 Increased By ▲ 0.02 (0.38%)
CNERGY 3.73 Increased By ▲ 0.01 (0.27%)
DCL 8.10 Increased By ▲ 0.11 (1.38%)
DFML 44.03 Increased By ▲ 3.76 (9.34%)
DGKC 88.16 Increased By ▲ 0.16 (0.18%)
FCCL 22.10 Increased By ▲ 0.11 (0.5%)
FFBL 42.20 No Change ▼ 0.00 (0%)
FFL 8.89 Increased By ▲ 0.34 (3.98%)
HUBC 153.09 Decreased By ▼ -0.20 (-0.13%)
HUMNL 10.60 Increased By ▲ 0.15 (1.44%)
KEL 4.51 Increased By ▲ 0.01 (0.22%)
KOSM 3.82 Decreased By ▼ -0.03 (-0.78%)
MLCF 36.98 Increased By ▲ 0.18 (0.49%)
NBP 48.40 Increased By ▲ 0.41 (0.85%)
OGDC 132.50 Increased By ▲ 0.70 (0.53%)
PAEL 26.60 Increased By ▲ 0.45 (1.72%)
PIBTL 6.09 Increased By ▲ 0.06 (1%)
PPL 116.51 Increased By ▲ 1.01 (0.87%)
PRL 22.73 Increased By ▲ 0.13 (0.58%)
PTC 12.58 No Change ▼ 0.00 (0%)
SEARL 55.79 Increased By ▲ 0.10 (0.18%)
TELE 7.35 Increased By ▲ 0.15 (2.08%)
TOMCL 38.50 Increased By ▲ 1.50 (4.05%)
TPLP 7.88 Increased By ▲ 0.03 (0.38%)
TREET 15.29 Decreased By ▼ -0.01 (-0.07%)
TRG 59.96 Increased By ▲ 5.41 (9.92%)
UNITY 31.72 Decreased By ▼ -0.14 (-0.44%)
WTL 1.18 Increased By ▲ 0.01 (0.85%)
BR100 8,405 Increased By 60.3 (0.72%)
BR30 26,561 Increased By 214 (0.81%)
KSE100 79,466 Increased By 478.4 (0.61%)
KSE30 25,498 Increased By 133 (0.52%)

Suzuki Motor Corporation (SMC), the parent company of Pak Suzuki Motor Company Limited (PSMC), has decided to purchase the shares of PSMC at a buy-back price of Rs609 per share, 50% higher than the sponsor’s original offer of Rs406 per share made in December.

The development was shared by SMC in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“We, Suzuki Motor Corporation (SMC), as the majority shareholder and sponsor of Pak Suzuki Motor Company Limited (PSMC), hereby convey the acceptance under PSX Regulation No. 5.14.7 to purchase the ordinary shares of Pak Suzuki at a buy-back price of PKR 609/- share,” the company said in its notice to the bourse.

The company shared that the buy-back is “subject to purchase of at least 13,915,775 ordinary shares (62.84%) out of the total 22,145,760 ordinary shares outstanding with the shareholders other than majority shareholder, to qualify for delisting as approved by the Voluntary Delisting Committee of the Exchange.”

SMC, the majority shareholder in PSMC, had originally proposed to purchase the shares representing 26.91% of the paid-up capital at a minimum purchase price of Rs406.

At the time, PSMC’s share price closed at Rs504.39, falling to its lower limit triggered by the purchase-price notice that day.

However, the Voluntary Delisting Committee (VDC) determined the ‘minimum buyback price’ of Rs609 per share for PSMC.

The VDC-determined price would result in SMC doling out nearly an additional Rs4.5 billion if it intends to purchase the entire 26.91% of the paid-up capital.

Last year in October, PSMC formally announced to voluntary delist from the bourse, citing several factors including Pak Suzuki’s losses, lack of dividends, and cheap valuations at the PSX. PSMC incurred a loss of Rs6.34 billion (loss per share of Rs77) in 2022, in stark contrast to a profit of Rs2.68 billion in the previous year. In the nine months of 2023, its loss stands at Rs5.87 billion, despite massive earnings of Rs3.8 billion in July-September.

Since the delisting announcement three months ago, PSMC has also been a star performer at the PSX, rallying from Rs205.94 on October 19 to Rs898.57 on January 11. However, the share price has plummeted since then and is currently hovering at the Rs613 level.

Comments

Comments are closed.

Haq Jan 18, 2024 11:50am
PSMC is owned by Suzuki Motors Japan, should be ashamed of producing substandard, unsafe, death traps junk on wheels (with 40 yrs old Bolan / Ravi & unreliable AGS). It was 1000 time better, when Sindh Engineering used to assemble Suzuki FX in early 80s
thumb_up Recommended (0)