Pak Suzuki agrees to 50% increase in buyback price

Pak Suzuki Motor Company has agreed to increase the price of its shares under a buyback plan to Rs609 per share to qualify for delisting from the Pakistan Stock Exchange (PSX). Earlier, the Japanese car manufacturing firm had offered to buy back its shares from the general public at Rs406 per share in the first week of December 2023. However, the voluntary delisting committee of the PSX a couple of days ago determined the buyback price at Rs609 per share, which was almost 50% higher compared to the company’s proposed price. In a notification sent to the PSX on Thursday, Pak Suzuki Motor said “we, Suzuki Motor Corporation (the Japanese owner) as the majority shareholder and sponsor of Pak Suzuki Motor Company Limited, hereby convey the acceptance…to purchase the ordinary shares of Pak Suzuki at a buyback price of Rs609/share, subject to the purchase of at least 13.92 million ordinary shares (62.84% of the total outstanding ordinary shares of 22.15 million) with shareholders other than majority shareholders, to qualify for delisting as approved by the voluntary delisting committee of the exchange.”