Carson’s to de-list four Malaysian Plantation Companies

Carson Cumberbatch PLC. will initiate procedures to de-list their Malaysian Plantation Companies (MPCs) due to the minimum public holding rule of the Colombo Stock Exchange (CSE), Carsons have announced in their latest annual report.

These rules require a minimum public float which is not available in the four companies - Selinsing, Shalimar, Indo-Malay and Good Hope in each of which Carson’s own over 90% of the shares.

These old-established Colombo incorporated companies hold oil palm plantations in Malaysia.

Neither do Carson’s intend diluting their holdings nor issuing new shares to ensure the minimum flat. There would therefore be no option to de-listing, the report said.

The report said that under the "Rules on Minimum Public Float, as a Continuous Listing Requirement" issued by the CSE mandates all listed companies to ensure a minimum threshold of 20% to be held by ‘public shareholders’ effective from January 1, 2014.

However, "on this date if a company does not fulfill this requirement such company is expected to be fully compliant by Dec 31, 2016, the Rules stipulate," CSE has said.

Carson’s said that they made a voluntary offer to all shareholders of the four Malaysian plantation companies they control in March 2011 with the objective of consolidating the ownership of these companies under the plantation sector holding company – Goodhope Asia Holdings Ltd., operating from Singapore.

"However, since the voluntary offer did not result in the acquisition of the entirety of the balance minority shareholding, the four MPCs continue to remain as listed entities with a ‘public float’ of less than what is now required by the above rule," Carson’s said.

Saying that compliance with the rule would conflict with the objective of the voluntary offer, and that the majority shareholder (that is Carson’s) does not have any intention of diluting its holding, nor did the four MPCs intend to issue further shares in order to conform to this rule, this would therefore entail the initiation of a de-listing process for the four MPCs.

"When so decided, this would be done in consultation with the regulator and the required shareholder approval from the MPCs," Carsons said.

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