A Karachi-based private construction company, RMS Ltd, has formally expressed its intent to acquire a controlling stake in Balochistan Wheels Ltd, an auto-parts manufacturer listed on the Pakistan Stock Exchange (PSX).
The announcement, made on Monday, outlines RMS Ltd’s plan to acquire 81.8% of the listed company’s shareholding, totaling up to 10.9 million shares. Acting as the offer’s manager on behalf of the acquirer, Arif Habib Ltd revealed that RMS Ltd will pursue this acquisition through a combination of a public offer and share purchase agreements with Balochistan Wheels Ltd sponsors.
In the initial phase of the acquisition, RMS Ltd aims to secure a substantial 63.5% shareholding through share purchase agreements.
The subsequent stage will involve the acquirer launching a public offer, either at the same or a higher rate, to acquire half of the remaining shareholding held by the general public, public-sector entities, banks, and mutual funds.
RMS Ltd, self-identified as a “traditional construction company,” specializes in building large-scale infrastructure such as highways, bridges, and dams. The company’s CEO, Zeeshan Ali, holds a 70% ownership stake, while two additional shareholders possess 20% and 10% shareholdings respectively in RMS Ltd.
Balo