Categories: News

PSMC buyout price determined at Rs. 609 by PSX

In a notification sent to the PSX on 15/01/2024, the Voluntary Delisting Committee of the PSX announced that it had determined the minimum PSMC buyback price to be Rs. 609. Pakistan Suzuki Motors Company (PSMC) had initially offered a buyback price of Rs. 406.

What happens now?

PSMC has 10 days to respond to this announcement. If it accepts the determined price, then shareholders of the company can expect to receive at least Rs. 609 per share.

However, in case the company rejects this assessment, it has the option of withdrawing its initial delisting notice. Were that to happen, the stock price is likely to crash to the pre-delisting price of around Rs. 150. Considering this risk, and its current price of Rs. 774.61 at close today, it is unlikely that shareholders can benefit from buying the stock currently. We already covered that price arbitrage at this point is too risky with minimal upside.

The price should settle somewhere below Rs. 600 in the next few days.

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