On’ally Holdings to rectify free float issue after UDA’s court case resolved

On’ally Holdings PLC has announced plans to propose a rectification plan to remedy the non-compliance to Colombo Stock Exchange’s (CSE) Listing Rules with regard to the minimum public holding requirement once the Court case filed by its second largest shareholder, the Urban Development Authority (UDA), is resolved. 

On’ally Holdings PLC owns and operates the Unity Plaza building in Bambalapitiya. The company’s public holding percentage dipped below 10 percent with effect from December 3, last year consequent to the purchase of 40.7 million shares of the company by its now controlling shareholder, Lanka Realty Investments PLC. 

Due to the said non-compliance, the company’s securities were transferred to the Second Board of the CSE with effect from July 8 this year. 

“… in terms of Rule 7.13.2(I)(f) of the Listing Rules of the CSE, that the company proposes to announce a rectification plan to remedy the said noncompliance,  upon Case No. HC/Civil/CO/2021/11 instituted by the Urban Development Authority, the 2nd largest shareholder of the company (wherein an Interim Order has been issued restraining the majority shareholder, Lanka Realty Investments PLC from proposing, requisitioning and/or voting on any resolution at a General Meeting of the company to disburse any retained earnings of the company and/or dispose of any asset of the Company), is resolved,” the company stated in a stock filing. 

UDA filed Civil Case No HC /Civil/11/2021/CO against the Lanka Realty Investments PLC, the Securities Exchange Commission of Sri Lanka (SEC) and the CSE under Sections 224 and 225 of the Companies Act No. 7 of 2007 (as amended) for alleged offences of oppression and mismanagement. 

UDA sought an interim order ex facie restraining Lanka Realty Investments from exercising voting rights of any shares accounting for 43.82 percent of the shares of the company until the conclusion of the inquiries by the SEC and CSE and until the public shareholding in the company is compliant with the Listing Rules of the CSE.

UDA also sought an interim order restraining the current majority shareholder from proposing, requisitioning and / or voting on any resolution at a General Meeting of the company to disburse any retained earnings and/ or to dispose of any asset of the company.

Accordingly, the Court had granted the interim order to restrain the current majority shareholder from proposing, requisitioning and /or voting on any resolution at a General Meeting of the company to disburse any retained earnings and/ or to dispose of any asset of the company. 

On’ally recently confirmed the appointment of Major General (Retd.) Vidanage Udaya Bandula Nanayakkara as its new Chairperson with effect from August 17 this year after dismissing the intial announcement of his appointment made in July. 

The public holding percentage of the company as at June 30, 2021 was 3.76 percent.