KARACHI: Gillette Pakistan Limited has formally applied to the Pakistan Stock Exchange (PSX) for delisting and approval to purchase shares held by minority shareholders, the company said in a notice on Thursday.
The buyback process has been initiated by the company’s majority shareholder, Procter & Gamble (P&G), which holds 91.72 per cent of Gillette Pakistan through its subsidiary SABV.
“The proposed delisting is a consequence of P&G’s global efforts to accelerate growth and value creation. The company has decided to shift its business and operating model in Pakistan and transition to a third-party distributor model to continue serving consumers,” the notice read.
“This means we will wind down the manufacturing and commercial activities of Gillette Pakistan Limited and serve consumers from our other operations in the region. Accordingly, the local subsidiary will cease its business operations, and the continuation of its listing on the PSX is no longer aligned with the parent’s global business strategy.”
Under the proposed plan, SABV intends to purchase 2,638,059 shares -- roughly 8.28 per cent of the company’s paid-up capital held by minority shareholders -- at a minimum price of Rs216.49 per share, determined in accordance with Regulation 5.14.1 of the PSX Regulations. Arif Habib Limited has been appointed as the purchase agent.
Gillette Pakistan has an authorised share capital of Rs400 million, divided into 40 million ordinary shares of Rs10 each, with 31.87 million shares issued and fully paid up. Last month, Gillette Pakistan announced that its parent company would discontinue its business operations in Pakistan as part of a global restructuring plan. P&G, an American consumer goods company founded in 1837, is known for brands including Pampers, Tide, Gillette and Head & Shoulders.
In a separate statement, P&G said it would wind up manufacturing and commercial activities in Pakistan and rely on third-party distributors to continue serving customers in the country.
In June, the company also said it would cut 7,000 jobs, about 15 per cent of its non-manufacturing roles, globally over the next two years under its non-core restructuring programme. Executives added at a Deutsche Bank conference in Paris that the company plans to exit certain categories, brands and product forms in individual markets, which could include brand divestitures.
