PSE wants Calata to make tender offer to minority shareholders
The Philippine Stock Exchange is urging Calata Corp. to buy out minority shareholders to provide them an exit opportunity at a fair price.
PSE president Ramon Monzon told reporters the exchange was willing to bend its rules and give Calata a chance to voluntarily delist from the bourse as long as the agribusiness firm makes a tender offer to buy out the shares held by minority shareholders, representing 73.5 percent of the company.
“If you are really concerned for the small shareholders, I told them that PSE is going to bend its rules. We won’t make it involuntary (delisting). We will make it voluntary so you can come back anytime. But you do a tender offer,” Monzon said.
In July, the PSE initiated involuntary delisting procedures against Calata for violating multiple disclosure rules and the so-called blackout rule. This followed a one month trading suspension on the company’s shares.
A company may be delisted from an exchange if it fails to meet listing requirements. Once involuntarily stricken off, it can not re=list within a period of five years and its directors and executive officers are disqualified from sitting as directors of any company applying for listing during the same period.
Monzon said the PSE had shot down Calata’s proposal to spin off its agribusiness assets into a private company and selling the listed entity to Millennium Global Holdings Inc.
MIllenium Global plans to infuse the assets of its unit MIllenium Ocean Star Corp. into Calata.
He said the takeover proposal would violate the exchange’s rules on chain-listing.
“That (referring to Millenium) is not doing anything and their only activity is owning a subsidiary, that MIllenium Seafood. If you transfer that to Calata, there will be chain losing and that’s against the rules,” Monzon said.
Chain listing prohibits a subsidiary or parent company of an existing listed issuer from listing if the assets and operations of the applicant are substantially the same as those of the existing issuer.