Philip Morris Investments B.V., the majority shareholder of Philip Morris (Pakistan) Limited (PMPK), has formally accepted the Pakistan Stock Exchange’s recommended buyback price of Rs1,300 per share for its voluntary delisting, as confirmed in a notice filed today. The final go-ahead from the PSX’s Voluntary Delisting Committee (VDC) came after detailed discussions set the minimum purchase price at this level—almost double the Rs664 per share initially offered by the sponsors. Formal acceptance by Philip Morris International (PMI’s) subsidiary is expected within ten days.
PMPK’s move follows an earlier announcement in March, when the company’s board approved delisting under Rule 5.14 of PSX’s Voluntary Delisting Rules. At that time, PMI disclosed its intent to acquire all minority shares and increase its already dominant 97.65% stake.
In FY 2024, PMPK reported robust revenue growth of 77.5%, rising to Rs32.34 billion from Rs18.22 billion in 2023, although net income fell to Rs254.7 million from Rs379.8 million in 2023. The company earned Rs8.63 billion in Q1 2025 (Jan–Mar), matching almost identically, its earnings in the same time previous year at Rs8.63 billion. However, the company swung to a loss of Rs579 million compared to a profit in the prior-year’s quarter . The swing reflects increased costs and operational pressures.
The primary aim behind delisting is consolidation—the move enables PMI’s subsidiaries to control PMPK fully and potentially improve earnings per share through the buyback. This mirrors global trends where multinational parent companies prefer tighter control, reduced compliance burdens, and less exposure to free-float requirements on local exchanges.
Company filings note that PMI and its affiliates will collectively hold 100% of shares post–delisting (excluding PMBS’s retained stake), eliminating PSX listing obligations .
Being Pakistan’s second-largest tobacco company after Pakistan Tobacco Company, the company has limited public float—just over 3 million shares or roughly 5% of total shares. With minimal retail presence on PSX, delisting is unlikely to significantly affect market dynamics, consumer prices, or sector competition.
However, for institutional and retail minority investors, it presents a rare liquidity opportunity at Rs1,300 per share. Given market trading generally hovered between Rs700–1,100, this offer represents a premium .
PMPK’s delisting aligns with PMI’s global strategy to streamline ownership while reducing public reporting obligations. Despite generous exit pricing for minorities, the move bears limited consequences for Pakistan’s tobacco market. For the broader investment community, it reinforces a pattern of reduced public equity access, especially in sectors dominated by multinational parents. Thoughtful valuation and a smooth execution will determine whether this consolidation delivers operational and financial benefits for PMI in Pakistan.
