PSE approves Calata Corp. delisting
( - November 7, 2017 - 9:59am

MANILA, Philippines — The Philippine Stock Exchange Inc. has approved the delisting of troubled agricultural company Calata Corp.

The local bourse’s decision was written in a memorandum dated November 7, forcing Calata to do a tender offer as "an exit mechanism."

Meanwhile, the trading of Calata shares will remain suspended until the effective date of delisting, which is yet to be set.

“The effective date of delisting will take into account the timetable of the company for the conduct of a tender offer to the public stockholders of the company as of June 30, 2017, which the Exchange required the company to undertake in order to provide the public stockholders an exit mechanism,” the PSE said.

“While the trading of the shares of stock of the company has been suspended since June 30, 2017, the Exchange is cognizant of the urgent need to apprise the investing public of the latest update on the delisting of the company,” it added.

“The Exchange will notify the investing public of further developments on the said tender offer and shall issue a separate announcement on the effective date of delisting.”

Calata faced delisting after the PSE said the company violated PSE’s disclosure requirements. In all, the PSE counted 55 violations of PSE disclosure rules from Oct. 6, 2016 to June 20, 2017.

Specifically, the PSE said Calata did not make the appropriate disclosure of its disposition of shares by the company’s directors and principal officers. It also did not provide updates of previous disclosures on material information that may affect investor decision.

Businessman Joseph Calata earlier said his company would not be able to make a tender offer to minority shareholders, saying that this would send the company to bankruptcy.

Instead, he said he would exchange the company’s shares for crypto currencies.

This is not the first time Calata was mired in a stock market controversy. In 2012, the year it went public, the company’s name was also dragged in stock market manipulation.

READ: Calata may face criminal complaints

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