Suzuki Motor Corporation will continue to invest in Pakistan and ensure that Pak Suzuki serves its customers in their best interest, a company official said on Thursday.
The Board of Directors (BoD) of Pak Suzuki Motor Company (PSMC) has decided to purchase all outstanding shares of the company and delist from the Pakistan Stock Exchange (PSX), the company said in a notice to the bourse.
Despite the decision of delisting, the company plans to continue its strong presence in the South Asian nation.
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“In the Suzuki Global strategy, Pakistan remains one of the most important markets and Suzuki is fully convinced of the future potential of Pakistan,” said Shafiq Ahmed Shaikh, Head, Public Relations, Pak Suzuki, in a WhatsApp message to Business Recorder.
Pak Suzuki was incorporated in Pakistan as a public limited company in August 1983. The company was formed in accordance with the terms of a joint venture agreement concluded between Pakistan Automobile Corporation Limited and Suzuki Motor Corporation, Japan (the Holding Company).
The company is engaged in assembling, manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s, and motorcycles and related spare parts.
As Pak Suzuki mainly operates in the low-priced hatchbacks in Pakistan, the company since its inception, has mostly been market leader in the country, commanding over 50% most of the time in the passenger cars category.
“Pak Suzuki is the pioneer of the automobile market in Pakistan and till now the market leader. Even after delisting from PSX, SMC will continue investment in Pakistan and ensure that Pak Suzuki will continue to serve the customers at their best,” Shaikh stressed.
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He added that PSMC has faced some challenging times and SMC is of the view that the minority shareholders should not suffer, especially on account of the low price of the shares they had been trading at.
“In view of the foregoing, the sponsors and majority shareholder, SMC intends to obtain full ownership of Pak Suzuki by purchasing all outstanding shares and securities held by minority shareholders,” Shaikh said. “It will be beneficial for them to be offered a fair exit.”