PDL AGM turns explosive
Property Development PLC (PDL) which owns, maintains and manages the Bank of Ceylon (BOC) headquarters building, went through a crisis-filled Annual General Meeting recently with shareholders accusing the management of charging low rental rates from the BOC.
They said that when the adjoining World Trade Centre rentals are priced at Rs. 350 per square foot, the PDL charges a mere Rs. 97 for the same extent. They also charged that PDL hadn’t done any diversification for the last eight years.
This AGM follows an equally turbulent Extra Ordinary General Meeting recently to pass a resolution towards delisting the shares of PDL which were not passed by the shareholders. The majority shareholder, BoC has 95.55 per cent in PDL leaving the public float at just less than 5 per cent.
BoC is offering Rs. 123 per share but minority shareholders say that with low rental rates the PDL share is undervalued and that they are getting a raw deal.
The PDL EGM followed PDL’s stock market filing on February 9 which reported a decision made by the PDL director board to de-list the shares of the company subject to shareholder and regulatory approval. This announcement also offered the BoC to acquire the balance shares of the minority shareholders who may wish to divest at a price of Rs.123 per share.
The Securities and Exchange Commission (SEC) last year tightened the noose on listed companies not adhering to norms with regard to minimum public shareholding.
Companies found non-compliant with the minimum public holding requirement as of July 1, 2017 were transferred to CSE’s Watch List on July 1, as directed by the SEC.
As at this January, 59 listed companies were non-compliant with the minimum public float rule of the CSE. Of this between 30 to 40 firms are likely to exit the exchange through this mechanism which is meant to weed out bad eggs, officials say.