PSX Sets Minimum Buyback Price for Pak Suzuki’s Delisting

The Voluntary Delisting Committee (VDC) of the Pakistan Stock Exchange (PSX) has determined the minimum buyback price of Rs. 609 per share for the voluntary delisting application of Pak Suzuki Motor Company Limited (PSMC). “The VDC held detailed discussions with the representatives of the Sponsor and after taking into account all relevant aspects under the applicable Regulations, the Committee decided to determine the minimum buyback price of PKR 609/- per share against the Offer of the Sponsor of PKR 406/- per share,” said a announcement by PSX on Monday. The announcement said that the sponsor of PSMC is required to convey the acceptance to the purchase price determined by the Exchange within ten days under PSX Regulation 5.14.7. The voluntary delisting of the company is subject to receipt of acceptance from the sponsor and fulfillment of relevant requirements by the company, it added. Speaking to ProPakistani regarding the development, a market expert said that the VDC’s decision to set the delisting offer for PSMC at Rs. 609 per share, indicating a 50 percent rise from the initial minimum price of Rs. 406 might not be received favorably by PSMC investors. “Their dissatisfaction could arise from the offer price being 21 percent below the stock’s last closing. In contrast, let’s consider another international deal of Unilever, where the final price of Rs. 15,000 per share was higher by 54 percent than the minimum price of Rs. 9,700 per share but it was also about 35 percent higher than the stock’s last closing before the final price announcement by PSX,” the expert added. The company’s scrip closed at Rs. 774.61 today. It is pertinent to mention here that PSMC had submitted a formal request to delist from the PSX in early December.