Pak Suzuki Motor Company Limited (PSX: PSMC) is in a situation where it might be removed from the Pakistan Stock Exchange. The reason behind this is the offer made by the majority shareholder to buy all the remaining shares of the company. This potential delisting is being considered by the Board of Directors (BoD) of PSMC.
In a stock filing on Thursday, it was mentioned that the BoD would discuss the intent of the majority shareholder to purchase all the outstanding shares held by other shareholders. This process would involve delisting under Rule 5.14.1 of the listing regulations. Once the board meets, their decision on this matter will be shared.
Apart from this major decision, the BoD will also take a look at the financial statements for the third quarter that ended on September 30, 2023. Additionally, they will consider any entitlement that needs to be declared.
It’s important to note that PSMC has declared a “Closed period” from October 12, 2023, to October 19, 2023, as per the regulations. During this time, no Director, CEO, or Executive is allowed to deal in the company’s shares directly or indirectly. This information was included in the filing to keep everyone informed.
The company, Pak Suzuki Motor, was established based on a joint venture agreement between Pakistan Automobile Corporation Limited and Suzuki Motor Corporation, Japan (the Holding Company). Its main activities involve assembling, progressive manufacturing, and marketing of Suzuki cars, pickups, vans, 4x4s, motorcycles, and related spare parts.