Suzuki Motor Corp. plans to take full control of Pak Suzuki, delist its shares

A man walks past a Suzuki outlet, displaying cars in Karachi, Pakistan, on July 27, 2022. (REUTERS/File)
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Updated 19 October 2023
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Suzuki Motor Corp. plans to take full control of Pak Suzuki, delist its shares

  • Pak Suzuki, which assembles Suzuki vehicles in Pakistan, cites losses, nonpayment of dividends and low share price as reasons 
  • Suzuki Motor Corp. currently holds about 73.09 percent share of Pak Suzuki based on Pak Suzuki’s latest annual statement 

KARACHI: Pak Suzuki Motor Company’s majority shareholder Suzuki Motor Corp. plans to take full control of the carmaker and delist it from the Pakistan Stock Exchange, Pak Suzuki said on Thursday. 

Pak Suzuki, which assembles Suzuki vehicles and motorcycles in Pakistan, said in a statement to the Pakistan stock exchange its losses in 2019, 2020, 2022, nonpayment of some dividends and a low share price were among the reasons for the decision. 

“In view of the foregoing ... Suzuki Motor Corporation intends to obtain full ownership of Pak Suzuki by purchasing all outstanding shares and securities held by minority shareholders, in order to increase ownership and delist the company from the Pakistan Stock Exchange,” Pak Suzuki’s statement said. 

“Considering the unfavorable situation for minority shareholders, it would be beneficial for them to be offered a fair exit,” the statement said. 

Suzuki Motor Corp. currently holds about 73.09 percent of Pak Suzuki based on Pak Suzuki’s latest annual statement. 

The company’s shares were 7.5 percent higher at the close on Thursday. 

Pak Suzuki also reported on Thursday a loss after tax of 5.871 billion Pakistani rupees ($21.20 million) during the nine-month period in 2023. 

Pak Suzuki had to implement a series of temporary shutdowns during the current year, along with other automakers in Pakistan. These were due to delays to letters of credit needed for imports, and weak demand in Pakistan due to rising interest rates and diminishing purchasing power. 

Pak Suzuki’s statement also said that within Suzuki’s global strategy, Pakistan remains one of the most important markets and the Japanese company is convinced of the future potential of Pakistan. 


Pakistan calls for advance food imports before Ramadan to ease pressure on ports

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Pakistan calls for advance food imports before Ramadan to ease pressure on ports

  • Ensuring food security during Ramadan a national responsibility, says maritime affairs minister
  • The Islamic month of Ramadan is expected to start in Pakistan after mid-February

KARACHI: Pakistan’s Maritime Affairs Minister Junaid Anwar Chaudhary on Sunday urged importers to import food items in advance and avoid last-minute delays to ease pressure on ports as Ramadan approaches. 

Muslims around the world fast during the holy month of Ramadan from dawn till sunset. They break the iftar meal with various food items such as fruits, dates and fried items. Thousands of people shop daily during Ramadan for iftar meals in markets across the country. 

In a message released to food importers, Chaudhry noted that the demand for edible oil and essential food items rises during the month of Ramadan. 

“Import strategies should be planned in a timely manner to reduce pressure on ports,” Chaudhry said. “Pakistani ports operate on a first-come, first-served basis.”

Chaudhry said delays in berthing of vessels and cargo lead to congestion at ports. He called on importers to share their import schedules in advance so that the port system could operate more efficiently. 

He said the timely supply of food items was possible through coordination between the public and private sectors. 

“Ensuring food security during Ramadan is a national responsibility,” the minister said. “Advance import of food commodities ahead of Ramadan is essential.”

A central moon sighting committee in Pakistan, the Ruet-e-Hilal Committee, determines when Ramadan begins. 

The Islamic month is expected to start this year after mid-February, around Feb. 17 or Feb. 18.