Pak Suzuki may delist from Pakistan Stock Exchange

Pak Suzuki Motor Company Ltd (PSMC) may decide to delist from the Pakistan Stock Exchange (PSX) as its majority shareholder has expressed its intention to scoop up the entire shareholding currently resting with minority shareholders. The Japanese automaker told investors on Thursday it’ll “review and consider” the proposal by the majority shareholder to acquire all outstanding shares to become a privately held firm in a board meeting on Oct 19. As a result, the share price of PSMC rose 5.47 per cent to Rs143.44 as investors hurried to accumulate the stock in anticipation of a considerably higher price at which voluntary delisting may take place. The current market value of the automaker’s share is subdued because the extended shortage of dollars in the national kitty has forced the firm to reduce its imports and scale down production. However, the PSX regulations specify five methods to determine as many benchmark purchase prices for the voluntary delisting process. The ultimate minimum purchase price can’t be set lower than the highest of the five benchmark rates determined on the basis of different criteria.