Philip Morris Pakistan to voluntarily delist from PSX, plans buyback

KARACHI: Philip Morris (Pakistan) Ltd (PMPKL), a subsidiary of Philip Morris International Inc (PMI), plans to buy back all outstanding shares and voluntarily delist from the Pakistan Stock Exchange (PSX), the company said in a notice to the bourse on Wednesday.

The board has approved the delisting under the PSX’s Voluntary Delisting Rules and will submit a formal application, the company said. Philip Morris Investments BV (PMIBV), the majority shareholder, has been authorised to repurchase shares from minority shareholders, excluding Philip Morris Brands SARL, which will continue to hold securities in the delisted entity. The buyback price will be determined in accordance with PSX regulations or as set by the Securities & Exchange Commission of Pakistan (SECP).

PMI, the ultimate parent company, currently controls 97.65 per cent of PMPKL’s shareholding through its subsidiaries, PMIBV and PMBS. The move to delist will allow PMIBV to increase its ownership by acquiring all remaining shares held by shareholders other than PMBS.

According to PMPKL, the delisting offers minority shareholders an exit opportunity at a competitive price while also enhancing the company’s earnings per share through the buyback. Following the announcement, Philip Morris Pakistan’s share price surged by Rs67.07, or 10 per cent, to Rs737.77, hitting its upper circuit limit on the PSX. PMPKL manufactures and sells cigarettes and tobacco products in Pakistan.