Gillette Pakistan Limited’s (PSX: GLPL) voluntary delisting application has been formally reviewed by the Voluntary Delisting Committee (VDC) of the Pakistan Stock Exchange, resulting in a significantly higher minimum buyback price than initially proposed by the company’s sponsors.
Following detailed deliberations with representatives of the sponsors, the VDC evaluated the delisting request in line with applicable PSX regulations and market considerations. Based on this assessment, the committee determined a minimum buyback price of Rs700 per share for minority shareholders. This price is substantially higher than the sponsor’s earlier offer of Rs216.49 per share, highlighting a wide valuation gap between the two figures.
The decision reflects the exchange’s role in safeguarding the interests of minority shareholders, particularly in voluntary delisting cases where shareholders may be compelled to exit their investment. By setting a higher benchmark price, the PSX aims to ensure that shareholders receive fair value for their holdings before the company exits the bourse.
Market reaction to the development was evident in Gillette Pakistan’s share price performance. At the time of reporting, the stock was trading at Rs450.22 per share, marking a 10% increase. The price movement suggests improved investor sentiment following the VDC’s decision, as the revised buyback price significantly exceeds the prevailing market value.
Under PSX Regulation 5.14.7, the sponsors of Gillette Pakistan Limited are now required to formally communicate their acceptance or rejection of the Rs700 per share buyback price within ten days. This response will determine the next course of action regarding the delisting process. If the sponsors accept the price, they will be obligated to purchase shares from minority shareholders at the rate set by the exchange.
However, if the sponsors choose not to accept the price, the voluntary delisting process may not proceed under the current proposal. In such a scenario, Gillette Pakistan would continue to remain listed on the exchange, unless a revised application or alternative arrangement is submitted in accordance with regulatory requirements.
According to the notice issued by the Pakistan Stock Exchange, the company’s voluntary delisting remains conditional upon the sponsors’ acceptance of the VDC-determined price and the fulfillment of all other applicable legal and regulatory formalities. These include compliance with disclosure requirements and ensuring transparent communication with shareholders throughout the process.
The case underscores the increasing scrutiny applied by regulators in voluntary delisting matters, particularly where there is a substantial disparity between sponsor offers and perceived market or intrinsic value. For investors, the outcome of this decision will be closely watched, as it may set an important precedent for future delisting cases in Pakistan’s equity market.
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