Calata softens stance, mulls share buyback
Beleaguered agribusiness firm Calata Corp. may after all buy back its shares from the public in a bid to appease shareholders who are seeking an exit.
With its impending delisting from the Philippine Stock Exchange, Calata is now considering a gradual buyback of the shares held by its minority shareholders, starting from the smallest investors up to the largest. This is a turnaround from its hardline stance against share repurchase, which management said, could push the company to bankruptcy.
“However, please understand that this can only be done gradually so as not to adversely affect the day-to-day operations of Calata,” the company said in a letter to its shareholders.
Management said it was was also studying on pleading a certain amount of its annual net income as cash dividend to reward shareholders who opted to stay.
“Management will be announcing at the soonest possible time the details of the proposed buyback. In the meantime, we call on shareholders to remain patient as the company is committed to find a win-win solution for all. Rest assured that the company is looking to get this issue behind us all and continue with the business that has been operating for decades,” Calata said.