Karachi: Philip Morris (Pakistan) Limited, a prominent entity listed on the Pakistan Stock Exchange (PSX), has announced its intention to delist from the exchange, as per a formal application submitted by the company on March 26, 2025. This move is coupled with a buyback initiative spearheaded by Philip Morris Investments B.V. (PMIBV), one of the company's major sponsors and majority shareholders.

The decision to delist comes under regulation 5.14 of the PSX Rule Book - Voluntary Delisting Regulations. PMIBV aims to increase its ownership of the company by purchasing 1,444,917 ordinary shares, representing -2.35% of the total ordinary paid-up share capital, currently held by minority shareholders other than Philip Morris Brands SARL (PMBS). The proposed buyback price is set at a minimum of PKR 664 per share, as stipulated by the relevant regulations.

According to information available from the Pakistan Stock Exchange (PSX), the company's registered office is situated in Karachi, and it operates with an authorized share capital of PKR 12 billion divided into ordinary and preference shares. Out of these, 61,580,341 ordinary shares are issued and fully paid up. Philip Morris International (PMI), the ultimate shareholder, holds a 97.65% stake through its subsidiaries, PMIBV and PMBS.

The rationale behind the delisting includes enhancing the company's earnings per share by reducing regulatory compliance costs and providing an exit opportunity for shareholders wishing to liquidate their investments at a competitive price. Topline Securities Limited has been appointed as the Purchase Agent for this transaction.

The application for delisting was accompanied by several key documents, including a valuation report by Joseph Lobo Private Limited and an auditor's certificate certifying the intrinsic value per share. Additionally, PMIBV has provided an undertaking to purchase shares from minority shareholders, excluding those held by PMBS, with an initial buyback period of 60 days, extendable by one year.

The company assures compliance with PSX regulations regarding voluntary delisting and has disclosed all material information to stakeholders. The delisting process is poised to impact the designated market category within the PSX, marking a significant transition for Philip Morris (Pakistan) Limited.