Karachi Wyeth LLC USA, the majority shareholder, has shown the intention to buy back all outstanding securities and shares presently listed at the Pakistan Stock Exchange of Wyeth Pakistan Limited , barring those held by Wyeth Holdings Corporation, being the wholly owned subsidiary of Wyeth LLC, from all minority security holders.
Minority shareholders hold approximately 396,579 ordinary shares comprising of 27.90 percent of the total paid up share capital of the Company.
Wyeth LLC USA., the majority shareholder proposes to purchase ordinary shares company at a minimum purchase price of PKR 1,284.18 per share.
The stock drops almost 7.5 percent to close today’s trading session at PKR1,866 per share after the announcement.
The Company has an authorized share capital of PKR 500,000,000 (Pak Rupees Five Hundred
Million) divided into 5,000,000 (Five Million) ordinary shares of PKR 100 each of which 1,421,609 (One Million Four Hundred Twenty One Thousand Six Hundred and Nine) ordinary shares of the aggregate nominal value of PKR 142,160,900 (Pak Rupees One Hundred Forty Two Million One Hundred Sixty Thousand and Nine Hundred) 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.
Wyeth LLC USA is delisting it’s subsidiary from Pakistan Stock Exchange due to the following reasons
a. The Sponsor and majority shareholder, Wyeth LLC USA which is a subsidiary of Pfizer Inc., intends to obtain full ownership of the Company (together with its affiliate) by purchasing all outstanding shares and securities held by minority shareholders barring those held by Wyeth Holdings LLC (being an affiliate of Wyeth LLC USA), in order to increase ownership and delisting of the Company from Pakistan Stock Exchange;
b. The Company previously owned a manufacturing plant which was divested in 2017. The Company is now only engaged in the import and distribution of imported products and has no new product pipeline.
c. The liquidity in the share of the Company at the Pakistan Stock Exchange is also relatively low, with an average daily traded volume of approximately only 688 shares.
d. The Company’s net sales have continuously declined over the past four years at a CAGR (2016 to 2020) of 24% and the Company has reported net losses in 2018 and 2020.
