Citing Losses – Suzuki Officially Delisting From Stock Exchange

Last week, we reported that Pak Suzuki is considering being?delisted from the Pakistan Stock Exchange (PSX).?Economist Ali Khizar tweeted that this is happening when the government wants listing on the stock exchange to grow.” Sharing the market’s current situation, Khizar mentioned that the companies do not see benefits in listing.

Explaining the whole situation, Khizar told PakWheels.com?that the company sees no benefit in remaining listed because of low valuation and several regulations to comply with, while they are not getting the required price from the market, hence the decision. “Many big companies are not listed in PSX,” he mentioned.

If Pak Suzuki is leaving the local market, Khizar said the company is not going anywhere; they are just leaving PSX. So, there is nothing to worry about for the customers of Pak Suzuki as the company is here to stay.

Official Decision by Pak Suzuki?

After a Board of Directors (BoD) meeting, the company has decided to purchase all outstanding shares of the company and delist from PSX. The development comes after a meeting today to consider delisting shares under section 5.14, Voluntary Delisting rules of PSX Rule Book.?

According to a notice, the BoD of the company has decided to delist the company from PSX, for which it will submit a formal application to the PSX for Suzuki Motor Corporation. “Our majority shareholder has been authorized to buy back ordinary shares held by the minority shareholders for an extent and a price to be determined according to regulations,” the notice read.?

Major Reasons?

As per the notice, the company has attributed the decision to several factors:?

• 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, from 2019.?
• Dividends have not been paid to shareholders except for 2021; the current share price of Pak Suzuki is at a historically low level.?
• The number of daily transactions/sales are limited.?

The company has stated that it will benefit minority shareholders to be offered a fair exit considering their unfavorable situation.?

Is Suzuki Exiting Pakistan??

The company clarified in its statement that Pakistan remains one of the most important markets within Suzuki’s global strategy. “The company is convinced of the future potential of Pakistan,” the notice mentioned.?

What are your thoughts on Pak Suzuki’s decision to be delisted from PSX? Please tell us in the comments section.?