PDL minority shareholders seek answers

Minority shareholders of Property Development Plc ( PDL) are seeking answers to a delayed proposal to delist the company from the Colombo Stock Exchange (CSE).

“Since the extraordinary meeting of PDL on April 4 on the plan to delist and make an exit (price) offer, we have had no communication from the company,” one shareholder said.

Among several companies that have failed to meet the minimum public holding requirements of the CSE, PDL has decided to delist the shares particularly since the Bank of Ceylon, the main shareholder with a 95.55 per cent stake, saying that it has no plans to dilute its stake. Under these rules, a minimum public float varies from 10 per cent upwards of the issued stock, and in PDL’s case, the public float is 4.4 per cent.

“We have been waiting for PDL to issue a new price at which the company will buy back the shares but there has been no movement on this matter since April,” another shareholder told the Business Times.

PDL owns the building where the Bank of Ceylon houses its headquarters in Fort and has no other expansion plans.

In July 2 notice to the CSE, PDL said the bank has offered to buy out the balance 4.4 per cent at an offer price of Rs. 123 per share. However at the April 4 meeting, shareholders didn’t approve the plan to delist the company.

PDL said it is currently in the process of evaluating the possibility of revising the terms of the delisting exit offer and upon conclusion of such evaluation, the company will take the necessary steps to present the delisting proposal to the shareholders with a revised offer. The company expects to commence the formalities pertaining to the delisting process in due course.”