Karachi December 5 2023: Suzuki Motors Corporation Japan, the majority shareholder of Pak Suzuki Motors to purchase ordinary shares held by the minority shareholders of the company at a minimum purchase price of PKR 406/- per share equivalent to value of USD 120 million.
On October 19, 2023 PSMC informed the Pakistan Stock Exchange (“PSX”) and submit Sponsors’ undertaking, whereby the company conveyed the intention of the majority shareholder to buy back 22,145,760 ordinary shares comprising of 26.91% of the total paid up share capital of Pak Suzuki Motor Company Limited (PSMC) and the decision of the Board of Directors of the Company to delist the Company from PSX.
Now the company submits herewith a formal application under regulation 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 is a public company limited by shares and is listed on PSX- the registered office is located at DSU-13, Pakistan Steel industrial Estate, Bin Qasim, Karachi.
The Company has an authorized share capital of PKR 5,000,000,000 (Pak Rupees Five Billion) divided into 500,000,000 (Five Hundred Mil/ion) ordinary shares of PKR 10 each of which 82,299,851 (Eighty-two Million two Hundred Ninety-Nine thousand Eight Hundred and Fifty One) ordinary shares of the aggregate nominal value of PKR 822,998,510 (Pak Rupees Eight hundred twenty-two mil/ion nine hundred ninety-eight thousand five hundred ten only) are issued and fully paid up. The shares of the Company are eligible for the purposes of Central Depository System of the Central Depository Company of Pakistan.
The following are the reasons for delisting of the Company from PSX as the Sponsor and majority shareholder, Suzuki Motor Corporation, Japan (“SMC” or “Sponsor”) intends to obtain full ownership of the “Company by purchasing all outstanding shares and securities held by minority shareholders, in order to increase ownership and to consider the delisting of the Company from Pakistan Stock Exchange. Moreover, the operations of Pak Suzuki resulted in 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;
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
SMC, the majority shareholder pro poses to purchase 22,145,760 ordinary shares (26.91%) of the paid-up share capital of the Company) held by the minority shareholders of the Company at a minimum purchase price of PKR 406/- per share. The proposed minimum purchase price has been determined in accordance with the requirements of the regulation 5.14.1 of PSX Rule Book.
Arif Habib Limited has been appointed as the Purchase Agent.
The intrinsic value per share of the Company is determined on the basis of revaluation of fixed assets carried out by Iqbal A. Nanjee & CO. (Pvt.) Ltd. who are approved valuators by Pakistan Banking Association and one of the valuators under PSX’s approved valuators list.
