Suzuki Motor Corporation has decided to acquire minority shares of Pak Suzuki Motor Company (PSMC) at Rs609 per share, a proposition that has been approved by the Pakistan Stock Exchange (PSX).
This announcement was made through a notice to the PSX, highlighting that Suzuki Motor Corporation, as the majority shareholder, aims to purchase all shares not held by the sponsor/majority shareholder.
The share purchase offer is scheduled to commence from February 22, 2024, to April 21, 2024, both days inclusive. Following this timeframe, plans are in place for the company to be removed from the listing on the PSX.
This offer is extended to all existing shareholders of PSMC, ensuring that payments for purchased shares will be completed within three weeks of issuing the receipt.
Transactions will occur via the PSX trading system, with payments to sellers following the PSX’s clearing schedule.
In another event on February 9, 2024, shareholders’ approved a special resolution at the Extraordinary General Meeting for the PSMC’s delisting from the PSX.
Moreover, earlier in the month, Nadeem Nisar, holding 10% of the company’s shares, expressed opposition to the delisting price set by EFG Hermes, an independent valuation firm.
In a letter to the PSX authorities, the Securities and Exchange Commission of Pakistan (SECP), and the Chairman of Pak Suzuki, Nisar contested that the delisting price of Rs 609 per share significantly undervalues the company, failing to meet both local and international valuation standards.
