By Paneetha Ameresekere
Ceylon Finance Today: Following Bukit Darah, Selinsing and Good Hope, two other Carson Cumberbatch companies have also given recent signals to delist.
Those are Shalimar and Indo-Malay plc. Voicing similar sentiments as that of Bukit, Selinsing and Good Hope, the two companies have told its shareholders, vis-a-vis their 30 September, 2015 quarterlies, that in lieu of the directives given by the regulators of the Colombo Stock Exchange (CSE), i.e. to increase the minimum float to 15% of voting shares, and to have a minimum share holding of 500, they are "compelled" to seek a delisting. The companies have no intention to dilute their shares. The Carson Cumberbatch Group, its subsidiaries and other connected companies, be they parent, associates or subsidiaries, are controlled by the Selvanathan brothers, Mano and Hari.
Bukit, Good Hope, Selinsing, Shalimar and Indo-Malay overlook the Carsons Group's overseas plantation companies, which are primarily located in Malaysia and Indonesia. They are essentially palm oil plantations, a commodity, which like tea, has seen its prices suffer a steep slide recently, led by the fall in oil prices-considered as the "jewel in the crown" commodity which gives direction to other commodity prices, ipso facto such as palm oil and tea. Those five Carsons companies have no interest to dilute their holdings either. Further, their share prices are relatively expensive, so, there is a question mark as to whether those companies are also able to attract investors, given the relative smallness of the CSE. Such high prices also make their shares illiquid.
The yellow light, preceding the greenlight given by those four companies to delist, follows Finlays, another plantation company, this time owned by the Swire Group, UK, recently notifying of their intent to delist and giving the price at which they will pay its small investors who want to sell their shares, at Rs 302 a share.
Market sources told this reporter that the CSE needs to be a place of attraction where listed companies can make money. Those are initially through an "IPO" the route from where they get listed, followed by rights and debentures issues to raise further cash.
If these criteria cannot be met, or, rather, unlisted companies not seeking to public, the CSE needs to examine why this is so. Is it due to its smallness, or due to any other reason?
One insinuation is that stock market manipulators not being prosecuted. That, apparently being why companies want to delist.
There is paperwork and attendant costs attached to a company being listed.
Nonetheless, such happenings are allegedly a source of discouragement to at least the majority shareholders of certain companies. Nevertheless,If crooks are allowed to go scot free, it acts as a disincentive to all bona fide stakeholders of the CSE and not just a few high net worth individuals only.
www.ceylontoday.lk
Ceylon Finance Today: Following Bukit Darah, Selinsing and Good Hope, two other Carson Cumberbatch companies have also given recent signals to delist.
Those are Shalimar and Indo-Malay plc. Voicing similar sentiments as that of Bukit, Selinsing and Good Hope, the two companies have told its shareholders, vis-a-vis their 30 September, 2015 quarterlies, that in lieu of the directives given by the regulators of the Colombo Stock Exchange (CSE), i.e. to increase the minimum float to 15% of voting shares, and to have a minimum share holding of 500, they are "compelled" to seek a delisting. The companies have no intention to dilute their shares. The Carson Cumberbatch Group, its subsidiaries and other connected companies, be they parent, associates or subsidiaries, are controlled by the Selvanathan brothers, Mano and Hari.
Bukit, Good Hope, Selinsing, Shalimar and Indo-Malay overlook the Carsons Group's overseas plantation companies, which are primarily located in Malaysia and Indonesia. They are essentially palm oil plantations, a commodity, which like tea, has seen its prices suffer a steep slide recently, led by the fall in oil prices-considered as the "jewel in the crown" commodity which gives direction to other commodity prices, ipso facto such as palm oil and tea. Those five Carsons companies have no interest to dilute their holdings either. Further, their share prices are relatively expensive, so, there is a question mark as to whether those companies are also able to attract investors, given the relative smallness of the CSE. Such high prices also make their shares illiquid.
The yellow light, preceding the greenlight given by those four companies to delist, follows Finlays, another plantation company, this time owned by the Swire Group, UK, recently notifying of their intent to delist and giving the price at which they will pay its small investors who want to sell their shares, at Rs 302 a share.
Market sources told this reporter that the CSE needs to be a place of attraction where listed companies can make money. Those are initially through an "IPO" the route from where they get listed, followed by rights and debentures issues to raise further cash.
If these criteria cannot be met, or, rather, unlisted companies not seeking to public, the CSE needs to examine why this is so. Is it due to its smallness, or due to any other reason?
One insinuation is that stock market manipulators not being prosecuted. That, apparently being why companies want to delist.
There is paperwork and attendant costs attached to a company being listed.
Nonetheless, such happenings are allegedly a source of discouragement to at least the majority shareholders of certain companies. Nevertheless,If crooks are allowed to go scot free, it acts as a disincentive to all bona fide stakeholders of the CSE and not just a few high net worth individuals only.
www.ceylontoday.lk
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