Pak Suzuki Motor Company Limited (PSMC) on Friday issued a list of procedures, terms and conditions for the purchase of shares by its parent company Suzuki Motor Corp (SMC).
Under the terms, shared by PSMC at the Pakistan Stock Exchange (PSX), SMC is offering to buy the shares of PSMC for Rs609 per share.
“This purchase price has also been approved by thé Pakistan Stock Exchange Limited in accordance with its Regulations,” read the notice.
PSMC shared that the share purchase offer will be valid from February 22 to April 21 both days inclusive.
“After this period, it is intended that the company will be delisted from the Pakistan Stock Exchange Limited,” read the notice.
The notice to the bourse further added that the offer is valid for all shareholders of the company i.e. those shareholders holding physical share certificates and those shareholders whose shares are held as book-entry security in the Central Depository System of the Central Depository Company of Pakistan Limited (CDC).
As per the notice, the shareholders of SMC decided to buyback all the shares of its subsidiary held by others at Rs609 per share.
The development comes after the shareholders of PSMC had resolved to authorise SMC to repurchase 22,145,760 ordinary shares of 62.84% of the shareholding at a buyback price of Rs 609 per share as determined by the Voluntary Delisting Committee (VDC) of PSX.
The majority shareholder is required to purchase at least 13,915,775 ordinary shares (62.84%) out of the total 22,145,760 ordinary shares outstanding with the shareholders other than the majority shareholder, to qualify for delisting as approved by the VDC of the PSX.
In January, SMC 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.
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.
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