Calata studies possible buyback of shares

Calata Corp. is studying the possibility of undertaking a gradual buyback of the shares held by minority shareholders.

In a letter to shareholders posted on its website, Calata said once the PSE decides with finality, “management will carefully study a gradual buyback of the shares of the public even if the tender offer is not mandatory.”

“However, please understand that this can only be done gradually so as not to adversely affect the day-today operations of Calata. We are currently attempting to formulate a plan on how to go about this, but we intend to start from the smallest shareholders up to the largest,” Calata said.

The company is also studying the possibility of pledging a certain amount of its annual net income as cash dividend that those who choose to stay can at least receive cash annually.

“Management will be announcing at the soonest possible time the details of the proposed buyback. In the meantime, we call on Calata’s 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,” the company said.

Calata said it has been affected by the decision of the PSE to delist.

“It is with deep regret that the shareholders of Calata have been unduly and unfairly affected by the decision of Philippine Stock Exchange to delist the company. Our legal team tried to persuade the delisting committee to lift the suspension and even asked PSE to just penalize those who have purportedly committed the violations. Management firmly believes that it should not be the public who would carry the burden of such penalty,” it said.

The PSE has decided to delist Calata from the exchange for 55 violations of the disclosure rules.

No date for the delisting has been set but the trading of Calata shares had already been suspended.

Calata is chaired by young businessman Joseph Calata.