Pak Suzuki Motor Company (PSMC) on Tuesday announced another temporary suspension of its car and two-wheeler factories due to stock shortages.
In a notification to the Pakistan Stock Exchange (PSX), PSMC said, “Due to insufficient inventory levels, the company management has decided to close the automobile factory from October 30, 2023 to November 3, 2023 and the two-wheeler factory. We have decided to close from November 3, 2023.” From November 1, 2023 to November 3, 2023.
Throughout the year, Japanese automakers announced shutdowns more than a dozen times. The company announced last week that it would close its car factories until October 27th.
The company made similar announcements in September, August, June and May, citing raw material shortages.
Last week, the Board of Directors (BoD) of Pak Suzuki Motor Company (PSMC) decided to purchase all of the company’s outstanding shares and delist it from the PSX, citing low valuation and losses.
According to the notice, PSMC said that the decision to delist was based on several factors.
“Pak Suzuki’s business generated losses in 2019, 2020 and 2022. It also generated losses until the third quarter of this year. Since 2019, it has not paid dividends to shareholders except for 2021. “Pak Suzuki’s stock price is currently at a historically low level, and daily trading and sales numbers are limited.”
“In view of the above, Suzuki Motor Corporation, the sponsor and major shareholder, has decided to purchase all outstanding shares and securities held by minority shareholders in order to expand its ownership and delist the company from the PSX. As a result, we plan to acquire full ownership of Pak Suzuki.”
“Given the unfavorable circumstances for minority shareholders, it would be beneficial for them to be offered a fair exit,” the company said.
Despite the difficult situation in the auto sector, the company’s stock price has continued to reach the upper limit since Pak Suzuki announced on October 12 that it was considering delisting.
At the time, the company said that PSMC would review and consider the intention of major shareholders to purchase all of the company’s outstanding shares and delist it from the PSX.