KARACHI – Suzuki Motor Corporation has proposed to buy 22.145 million ordinary shares of Pak Suzuki Motor Company at a minimum price of Rs406 per share.
PSMC has appointed Arif Habib Limited as the purchase agent.
In a notice sent to the Pakistan Stock Exchange (PSX) on Monday, the PSMC said that the proposed minimum purchase price has been determined as per the requirements of the regulations.
“SMC, the majority shareholder in PSMC, proposes to purchase 22,145,760 ordinary shares (26.91%) of the paid-up share capital held by the minority shareholders at a minimum purchase price of Rs406 per share,” the notice reads.
The SMC intends to obtain full ownership of the company by purchasing all outstanding shares and securities held by minority shareholders, to increase ownership and to consider the delisting of the company from PSX.
PSMC stated that the company faced losses in 2019, 2020 and 2022. It has also resulted in a loss up to the 3rd quarter of this financial year i.e. 2023. From 2019, dividends have not been paid to shareholders except for 2021, it said.
“Therefore, the sponsors of the company believe that it is their responsibility to offer the minority shareholders a fair opportunity to exit so that they can make the best use of their investment in other profitable avenues,” PSMC said.
