Gillette Pakistan Limited has formally applied for voluntary delisting from the Pakistan Stock Exchange (PSX) as its parent company, Procter & Gamble (P&G), restructures its business operations in the country, according to a notice submitted to the exchange on Thursday.
In its application, the company said, “We are pleased to submit herewith a formal application under regulation 5.14.3 of the PSX Rule Book with the request to delist the Company and approve the purchase of shares from the minority shareholders of the Company under the Regulations.”
The company reiterated that its Board of Directors had already approved the decision to delist under PSX’s Voluntary Delisting Regulations. Gillette Pakistan is a public company with an authorised capital of Rs400 million, divided into 40 million ordinary shares, of which 31.872 million shares (valued at Rs318.72 million) are issued and fully paid up.
The notice stated that Procter & Gamble is the ultimate shareholder and holds 91.72% of Gillette Pakistan’s shares through its subsidiary SABV. Under the proposed delisting plan, SABV will purchase 2,638,059 shares, representing 8.28% of the total paid-up capital, from minority shareholders at a minimum price of Rs216.49 per share, determined in accordance with Regulation 5.14.1.
Explaining the rationale behind the exit, the company said the delisting is part of P&G’s global restructuring. “The Company has decided to shift the Company’s business and operating model in Pakistan and transition to a third-party distributor model. Accordingly, the local subsidiary will cease its business operations, and the continuation of its listing on the PSX is no longer aligned with the parent’s global business strategy,” the filing noted.
Arif Habib Limited has been appointed as the purchase agent for the share buyback process.
Gillette Pakistan requested the PSX to process the application and approve the purchase of minority shares in line with delisting regulations.
