PDL announces plans to delist offering attractive exit offer

Property Development PLC (PDL), the owner of Bank of Ceylon Tower and a subsidiary of Bank of Ceylon (BOC), announced plans to delist its shares on the Colombo Stock Exchange (CSE), with an attractive exit offer.

“We communicate to you that the board of directors of Property Development PLC resolved on February 14, 2022, to recommend to the shareholders to delist the shares of the company from the Official List of the CSE,” the company announced in a stock market filing, yesterday.

PDL is expected to call for an Extraordinary General Meeting shortly to put forward a resolution before its shareholders to obtain their approval to delist the shares from the Official List of the CSE by submitting an application with the SEC.

Further, the directors of the company have  proposed to purchase the shares at Rs.183  per a share while BOC, which holds  95.55 percent of shares of the company, would be retraining its shares.

“A further announcement is made today in terms of Listing Rule 7.1 pertaining to the decision of the board to repurchase all the shares of the shareholders (other than the shares held by BOC) in terms of Section 64 of the act as aforesaid in order to arrange for the purchase of shares of any shareholder, who wish to sell their shares in the process of delisting, which resolution will be given effect only after the shareholders approving the resolution to delist and thereafter the application to delist to be made by the company to the SEC being approved by the Securities and Exchange Commission of Sri Lanka (SEC),” PDL’s market 
filing said.

PDL shares closed at Rs.132.50 yesterday and its highest recent market price of Rs.155 per a share was recorded in 2020.

For the September 2021 quarter, the company posted Rs.161.53 million profits on a revenue of Rs.228.70 million.
However, the company was hit by the pandemic in 2020. Consequently, it scaled down its investments towards upgrading of the BOC Tower down to the most essential maintenance issues.