RMS (Private) Limited, a construction company, has expressed its intention to acquire the majority stake of Baluchistan Wheels Limited (BWHL).

The development was shared by brokerage house Arif Habib Limited, which was appointed manager to the offer, in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“On behalf of the acquirer, we are pleased to submit a Public Announcement of Intention to acquire up to 63.56% shares of Baluchistan Wheels Limited (the “Target Company”) by RMS (Private) Limited,” read the notice.

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As per the PSX notice, the company intends to acquire 63.56% – 8.47 million shares – through an agreement, and another 18.22%, which translates into 2.43 million shares, through public offer.

This translates into a total potential acquisition of 81.78%.

“As per PSX regulations, if a company intends to acquire over 30% stake of a company, it needs to offer to acquire shares from minority shareholders as well, which translates roughly to half of the total free-float.”

RMS (private) Limited is a traditional construction company which is registered with Pakistan Engineering Council in Category C-A.

Baluchistan Wheels Limited, incorporated in Pakistan on 16 June 1980, is engaged in manufacturing and marketing of automotive wheel rims for trucks, buses, tractors, cars and mini commercial vehicles.

As per the notice to the bourse, total number of issued shares of BWHL stood at 13.334 million.

BWHL’s share price quoted one day before the public announcement of intention stood at Rs86.96 per share.

Meanwhile, the weighted average share price as quoted on the securities exchange during four weeks preceding the dateof public announcement of intention stood at Rs81.99 per share.