Wyeth sets repurchase price at Rs1,284.18 per share

Published August 17, 2021
Wyeth Pakistan Lim­ited on Monday disclosed the minimum purchase share for the buyback transactions with the minority shareholders at Rs1,284.18 per share. — File
Wyeth Pakistan Lim­ited on Monday disclosed the minimum purchase share for the buyback transactions with the minority shareholders at Rs1,284.18 per share. — File

KARACHI: Wyeth Pakistan Lim­ited on Monday disclosed the minimum purchase share for the buyback transactions with the minority shareholders at Rs1,284.18 per share.

The pharmaceutical firm had first informed the Pakistan Stock Exchange (PSX) on May 18, 2021 that the majority shareholder in the company Wyeth LLC, USA intended to repurchase all outstanding shares presently listed at the bourse, barring those held by Wyeth Holdings Corporation, being the wholly owned subsidiary of Wyeth LLC.

The company intends to repurchase 396,579 shares comprising 27.90 per cent of the capital of the company and seek voluntary delisting from the PSX.

In the earlier dispatch to the PSX on May 18, Wyeth had not disclosed the repurchase price.

Following the disclosure of information, the stock price of Wyeth Pakistan suffered a steep fall of Rs15.30 to hit its lower lock and close at Rs1,866.19 per share at the trading on Monday.

Wyeth Pakistan said, “The propo­sed minimum purchase price had be­en determined in accordance with the requirements of the regulation 5.14.1 of PSX Rule Book”. How­ever, going by the practice adopted in previous repurchase transactions, the buyback price of the Wyeth sto­ck must not be understood to be final.

The relevant committee of the PSX would hold several rounds of talks with the Company officials to broker a price per share acceptable to both buyers and sellers. In the dispatch to the PSX, Wyeth Pakistan also conveyed the reasons for the parent company to call back the minority stock and seek de-listing.

The reasons mentioned included: The sponsors Wyeth LLC USA which is a subsidiary of Pfizer Inc., intended to obtain full ownership of the Company (together with its affiliate) by purchasing all outstanding shares held by minority shareholders barring those held by Wyeth Holdings LLC (being an affiliate of Wyeth LLC USA) in order to increase ownership and delisting of the company from PSX; secondly, the company previously owned a manufacturing plant which was divested in 2017.

“The company is now engaged in the import and distribution of imported products and has no new product pipeline,” it said.

Wyeth further stated that the liquidity in the share of the company was relatively low, with an average daily traded volume of approximately only 688 shares. Finally, the company’s net sales had continued to decline over the past four years at a CAGR (2016-2020) of 24pc and the company had reported net losses in 2018 and 2020.

Published in Dawn, August 17th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Course correction
Updated 24 Feb, 2024

Course correction

THE PTI emerged from the Feb 8 elections as Pakistan’s largest political party. It should start acting like one....
The plot thickens
24 Feb, 2024

The plot thickens

THE recent explosive allegations by Liaquat Ali Chattha, the former commissioner of Rawalpindi, have thrust the...
Trigger-happy police
24 Feb, 2024

Trigger-happy police

ARE the citizens of Karachi becoming fair game again? There were some grisly signs of a rapid return to living...
What next for PTI?
Updated 23 Feb, 2024

What next for PTI?

THE incoming government has been carved up. With the major offices apportioned between the PML-N and PPP, the...
Tackling debt
23 Feb, 2024

Tackling debt

MANY would tend to describe a new report warning that the country is headed for “inevitable default”, which will...
Imprisoned abroad
23 Feb, 2024

Imprisoned abroad

THE issue of Pakistani prisoners imprisoned in foreign jails crops up regularly, particularly during parliamentary...