Philip Morris Pakistan Delists from PSX for Full Control
The move is seen as a strategic decision to consolidate ownership and expand operations in the country, with Philip Morris International aiming to increase its control over the Pakistani market. The delisting process is expected to be completed in accordance with PSX regulations and the Securities and Exchange Commission of Pakistan.
Philip Morris Pakistan's shares will be delisted from the Pakistan Stock Exchange, allowing Philip Morris International to gain full control of the company by purchasing outstanding shares from minority shareholders at a price determined by PSX regulations.
The delisting, set to take place under the PSX Rule Book's voluntary delisting provision, is part of PMI's long-term strategy to expand its footprint in the country. With a 97.65% stake, PMI is the majority shareholder, and the move aims to consolidate ownership. The decision was approved by the company's Board of Directors in a meeting held on March 25, 2025.
The delisting announcement led to a 10% surge in the company's stock value, with the share price increasing by Rs67.07 to Rs737.77. Philip Morris Investments B.V., the majority shareholder, has been authorized to buy back ordinary shares held by minority shareholders, except those held by Philip Morris Brands SARL. The buyback price and extent will be determined by PSX regulations or the Securities and Exchange Commission of Pakistan.
The delisting is expected to provide an opportunity for minority shareholders to exit their investments at a competitive price and improve the company's earnings per share. A formal application for voluntary delisting will be submitted to the PSX, marking a significant development in the company's strategy to expand its presence in Pakistan.