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 disclosed the development in its notice to the exchange on Thursday.
The company’s majority shareholder, Procter & Gamble (P&G) Company, which holds 91.72% of Gillette Pakistan’s shareholding through its subsidiary SABV, has initiated the buyback process.
“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 to serve consumers.
“This means we will wind down the manufacturing and commercial activities of Gillette Pakistan Ltd. 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,” read the notice.
Under the proposed plan, SABV intends to purchase 2,638,059 shares — approximately 8.28% of the company’s paid-up capital held by minority shareholders — at a minimum price of Rs216.49 per share, “determined in accordance with the requirements of the regulation 5.14.1 of the Regulations”.
Arif Habib Limited has been appointed as the purchase agent, as added in the notice.
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 Limited announced that its parent company, Procter & Gamble (P&G), will discontinue its business operations in Pakistan as part of a global restructuring plan.
P&G is an American global consumer goods company founded in 1837. The company is known for brands such as Pampers, Tide, Gillette, and Head & Shoulders.
In a separate statement, P&G said that it would wind up its manufacturing and commercial activities in Pakistan and rely on third-party distributors to continue serving its customers in the South Asian country.
Back in June, P&G said it would cut 7,000 jobs, or about 15% of its non-manufacturing roles, globally over the next two years as part of its non-core restructuring program.
The company also announced plans to exit some categories, brands and product forms in individual markets, executives said at a Deutsche Bank conference in Paris, adding that the exits could also likely include some brand divestitures.
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