Karachi October 12 2023: Pak Suzuki Motor Company Limited considers to delist from Pakistan Stock Exchange however final decision will be made on October 19th of this month, according to company filing to the exchange.
Share price of the company surged 7.5 percent at Pakistan Stock Exchange after the announcement to close at PKR 146.2.
"The Board of Directors of Pak Suzuki Motor Company Limited meeting will be held on Thursday, 19th October 2023 at 10:00 a.m., at
Karachi to review and consider the majority shareholder's intent to purchase all outstanding shares of Pak Suzuki Motor Company Limited held by other shareholders and de-listing under Rule 5.14.1. of the listing regulations. The decision taken by the board shall be communicated right alter the board meeting" the notification states.
The board also review and consider the quarterly financial statements of the Company for the 3rd quarter ended September 30, 2023 and for declaration of any entitlement if any.
Pak Suzuki Motor Company Limited was incorporated in Pakistan as a public limited company in August 1983. The Company was formed in accordance with the terms of a joint venture agreement concluded between Pakistan Automobile Corporation Limited and Suzuki Motor Corporation, Japan (the Holding Company). The Company is engaged in the assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts.
Any company intending to seek voluntary de-Iisting from the Exchange shall notify the Exchange, immediately upon Board’s decision to de-Iist the Security along with the reasons thereof. Such intimation shall also include minimum price at which the securities are proposed to be purchased.
According to stock exchange rules, the minimum purchase price for voluntary delisting shall not be less than the highest of the benchmark price based on any of the following: (a) Current Market Price as of the date the Exchange receives the notification under 5.14.1. (b) Average Market Price of last three years (Annualized) (c) Intrinsic value per share (estimated net realizable value of assets of the company) (d) Earnings Multiplier approach (for profitable companies) (e) The maximum price at which the Sponsors had purchased these shares from the open market in the preceding one year.