Karachi October 19 2023: The BoD of Pak Suzuki has resolved lo delist the Company from PSX under rule 5.14 of Voluntary Delisting rules of the Rule Book for which the Company shall submit a formal application to the PSX.
For delisting Suzuki Motor Corporation, the majority shareholder of the Company has been authorized lo buy-back ordinary shares held by the minority shareholders of the Company to an extend and at a price to be determined in accordance with the regulations or as may be determined by the PSX or the Securities Exchange Commission of Pakistan for the purposes of voluntary Delisting of the Company from the PSX.
The majority shareholder, Suzuki Motor Corporation, intends to obtain full ownership of Pak Suzuki Motor Company Limited (the "Company") by purchasing all outstanding shares and securities held by other shareholders, in order to increase ownership and
to consider the delisting of the Company from the Pakistan Stock Exchange.
AND WHEREAS, the reason for delisting are as follows:
a) 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 year.
b) From 2019, dividends have not been paid to shareholders except for 2021.
c) The current share price of Pak Suzuki is at a historically low level and the number of daily transactions/sales are limited.
ln view of the foregoing, the Sponsor and majority shareholder, Suzuki Motor Corporation, intends to obtain full ownership of Pak Suzuki by purchasing all outstanding shares and securities held by minority shareholders, in order to increase ownership and delist the Company
from the Pakistan Stock Exchange. Considering the unfavorable situation for minority shareholders, it would be beneficial for them to be offered a fair exit.
ln the Suzuki global strategy, Pakistan remains one of the most important markets and Suzuki is fully convinced of the future potential of Pakistan.
a) The Company shall make a formal application to the PSX for the delisting of the shares of the Company from PSX
b) Upon acceptance of the application for delisting its shares from PSX, in accordance with the Rule book, a general meeting of the shareholders of the Company shall be convened and held within 30 days of agreement with PSX on the minimum purcbase price to seek approval through a special resolution for the delistíng of the shares of the Company from PSX.