Calata cries foul over PSE’s insistence on a tender offer
The management of Calata Corp. has asailed the Philippine Stock Echange for exerting extreme pressure upon the agribusiness firm to do a voluntary delisting and make a tender offer for the shares held by minority investors.
Calata said conducting a tender would kill the company given its current legal and financial limitations.
The company said it does not have enough funds to buy back the shares of minority shareholders.
It claimed that it only had P400 million of retained earnings as of the end of 2016, short of the P1 billion needed to buy back its public investors.
“Voluntary delisting, which carries with it a requirement of doing a tender offer, is possible only if the company has the financial capability of conducting the tender offer…,” Calata said.
Management said forcing Calata to do a tender offer would not only be “contrary to law but would also have an effect of liquidating the whole company just to satisfy the PSE’s will for the Company to do the tender offer. This is because of the large public float which is almost 70% of the company.”
Calata said a tender offer is not only impractical but grossly unfair.
It added that deliating Calata may create a very dangerous and damaging precedent.
The PSE has initiated delisting procedures against Calata for numerous violations of the bourse’s disclosure rules.
“Delisting should be the ultimate and last resort against erring listed companies. It is respectfully posited that the PSE should promote the protection and growth of public investment and not make delisting as its first option.
Should the company be involuntarily delisted by the PSE, all shareholders including the public shareholders shall be stuck with untradeable shares and deprived of their right to encash said shares which were bought through their hard-earned money,” Calata said.