Gillette Pakistan on Monday shot down rumours of its impending delisting from the Karachi Stock Exchange (KSE).
Sources in the stock market a local newspaper that the company was planning a buyback of its ordinary shares and subsequent delisting from the KSE.
However, Deputy CFO Asif Khan denied plans to buyback all shares and subsequently delist from the local bourse.
“The holding company, Gillette Netherland, which was also the majority shareholder in Gillette Pakistan, is increasing its holding by purchasing shares at the local bourse.” he said.
However, analyst Khurram Schehzad at Arif Habib Ltd does not believe it. “If Gillette were planning a buyback of shares, this is not the right time as shares prices are on the higher side these days,” he reasoned.
Shares of Gillette Pakistan were trading at Rs369 per share as on Monday.
Furthermore, Schehzad said that the market was abuzz with rumours that many other multinational companies were planning to delist although no official notice had been released so far.
If the rumours are proven true, Gillette will be the first high-profile company to delist after Unilever Pakistan’s decision to do so in January 2013.
