Jumping off the sinking (Glass) Ship ?

Will GLAS delist here soon ?  
Experts to enlighten the lesser mortals in this forum here , the consequence of such a action please
This massive selling seen was a clear sign of Rats jumping off the sinking ship?  

Total shares 950m
minority shares 414m
Traded shares today 3m

read figures and try to understand..

They might look at delisting we don't know for sure. In India they are delisting and have offered a few rupeees more than the existing trading price.

They are not going to delist In SL I checked with the management.

Can Indians be trusted and will they disclose their future plans just like that over the phone ?   

balapas wrote:They are not going to delist In SL I checked with the management.

In fact, I am trying to decipher.
How do you see it ?
Are the numbers that matter or who unloaded the lump is important?

malanp wrote:
Total shares 950m
minority shares 414m
Traded shares today 3m
read figures and try to understand..

Kithsiri wrote:In fact, I am trying to decipher.
How do you see it ?
Are the numbers that matter or who unloaded the lump is important?

malanp wrote:
Total shares 950m
minority shares 414m
Traded shares today 3m
read figures and try to understand..

what is more important is numbers,, 3m out of 414m is just less than 1%.

I dont know why people go panic and think GLAS will be delisted based on less than 1% transactions.

In India desisting news push Piramal 52 weeks High.
http://www.business-standard.com/article/news-cm/piramal-glass-hits-52-week-high-114021100279_1.html

Here 52 weeks Low.

Whether Glass is delisted or not, curious to know whether anything call "delisting rules" as there are listing rules. If so where can we find it.

In case of a delisting what is the best cause of action for an existing share holder? Hold or sell your shares immediately?(By the time the company announces a delisting, share prices could have come down or people who knew about it before the event would have sold their stake). Of course a unrealistic reduction in price may lead to a take over bid.

After a delisting there could be a offer from company delisted, to buy shares from existing share holders. In this case who decides on the offer price? If it is determine by the company and the final offer price is unreasonable, can SEC or any other authority intervened?

This is just to get an idea in case something goes wrong.

Excellent and hope experts with knowledge will post their answers here soon.
I need to add one more, can a share holder refuses the offered price and hold on to the shares and what are the financial and legal implications of such an act?
I am sure, there must be historical experiences of such acts in other parts of the worlds.
Awaits responses from the experts.

pushpakumara wrote:Whether Glass is delisted or not, curious to know whether anything call "delisting rules" as there are listing rules. If so where can we find it.
In case of a delisting what is the best cause of action for an existing share holder? Hold or sell your shares immediately?(By the time the company announces a delisting, share prices could have come down or people who knew about it before the event would have sold their stake). Of course a unrealistic reduction in price may lead to a take over bid.
After a delisting there could be a offer from company delisted, to buy shares from existing share holders. In this case who decides on the offer price? If it is determine by the company and the final offer price is unreasonable, can SEC or any other authority intervened?
This is just to get an idea in case something goes wrong.  

pushpakumara wrote:Whether Glass is delisted or not, curious to know whether anything call "delisting rules" as there are listing rules. If so where can we find it.

In case of a delisting what is the best cause of action for an existing share holder? Hold or sell your shares immediately?(By the time the company announces a delisting, share prices could have come down or people who knew about it before the event would have sold their stake). Of course a unrealistic reduction in price may lead to a take over bid.

After a delisting there could be a offer from company delisted, to buy shares from existing share holders. In this case who decides on the offer price? If it is determine by the company and the final offer price is unreasonable, can SEC or any other authority intervened?

This is just to get an idea in case something goes wrong.




 

Pushapakumara

Delisting of company shares is a wrong term, it is delisting of company name.

Delisting of company name from CSE is two step process.

First, the company has to buy its minority shares from the open market- the rules for this process is governed by the section 64 of the companies act 2007.

Secondly after buying all minority shares, the company has to apply from CSE for delisting of its name. CSE or CDS does not delist individual shares they delist the company name.

the rights are obligations of minority shareholders are stipulated in the section 64.

Tgt destination Rs 2.20.

Please read the following before making your buy or sell decisions on Piramal

Piramal Glass had after market hours on Friday, 7 February 2014 said that the company has received a proposal dated 7 February 2014 from Sri Hari Trust acting through its corporate trustee PEL Management Services (proposed acquirer), to acquire the fully paid-up equity shares of Piramal Glass held by public shareholders in accordance and compliance with Sebi (Securities and Exchange Board of India).

As per the delisting proposal, the objective of the proposed acquirer in making the delisting offer is to give flexibility to the promoter group to provide the desired financial support to the company including modifying the existing capital structure, infusing additional capital and adequately supporting the company's strategic growth initiatives, the company said in a statement.

The company needs capital infusion to correct its gearing and liquidity issues, which the promoter is willing to provide. However, with the promoter group shareholding being almost 75%, capital infusion options in the company are limited due to the current state of capital markets. Thus, the delisting proposal would give the company flexibility to deleverage itself and recognize its operations to improve its performance. Additionally, given the trading volume of the company's shares, the promoter group believes that the delisting proposal is in the best interests of the public shareholders as it comes with an opportunity to exit, Piramal Glass added.

The promoters have fixed an indicative offer price of Rs 100 per share for public shareholders, Piramal Glass said in a statement.

Piramal Glass' consolidated net profit jumped 156.8% to Rs 12.12 crore on 15.8% growth in total income to Rs 462.02 crore in Q3 December 2013 over Q3 December 2012. The result was announced during market hours on Monday, 10 February 2014

Piramal Glass is engaged in the manufacturing of flacconage glass for the pharmaceuticals and perfumery businesses. The company's end-to-end flacconage solutions include full bottle design capabilities, in-house mould design, CNC machines for mould manufacturing, high quality glass manufacturing and dedicated ancillaries for decoration and accessories like caps, cartons and brushes.
http://www.business-standard.com/article/news-cm/piramal-glass-hits-52-week-high-114021100279_1.html

Piramal Glass Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 10, 2014, has noted and taken on record the Delisting Proposal and decided that the said proposal be communicated, along with the favorable recommendation of the Board, to the shareholders of the Company in terms of the Delisting Regulations and in this regard, intends to seek the approval of shareholders, through Postal Ballot for such Voluntary Delisting of the equity shares of the Company from the Stock Exchanges.

http://www.bseindia.com/xml-data/corpfiling/AttachLive/Piramal_Glass_Ltd_100214.pdf

The above news in for India...

And if de-listing is the buzz word here, how much company will pay for share holders to buy back shares? It cant be less than 4 rite?

smallville wrote:The above news in for India...

And if de-listing is the buzz word here, how much company will pay for share holders to buy back shares? It cant be less than 4 rite?

NAV. 3.67
I guess between 3.70 to 4.00
Y nt 4.20????
Let c
  

can someone explain me is it mandatory to delist here in SriLanka as well since delisting in india? coz what I think why they can't sell here and exit if they want...

malanp wrote:

pushpakumara wrote:Whether Glass is delisted or not, curious to know whether anything call "delisting rules" as there are listing rules. If so where can we find it.

In case of a delisting what is the best cause of action for an existing share holder? Hold or sell your shares immediately?(By the time the company announces a delisting, share prices could have come down or people who knew about it before the event would have sold their stake). Of course a unrealistic reduction in price may lead to a take over bid.

After a delisting there could be a offer from company delisted, to buy shares from existing share holders. In this case who decides on the offer price? If it is determine by the company and the final offer price is unreasonable, can SEC or any other authority intervened?

This is just to get an idea in case something goes wrong.



 

Pushapakumara

Delisting of company shares is a wrong term, it is delisting of company name.

Delisting of company name from CSE is two step process.

First, the company has to buy its minority shares from the open market- the rules for this process is governed by the section 64 of the companies act 2007.

Secondly after buying all minority shares, the company has to apply from CSE for delisting of its name.  CSE or CDS does not delist individual shares they delist the company name.

the rights are obligations of minority shareholders are stipulated in the section 64.

Many thanks malanp for the useful information provided. As per the act company will determine the price based on the opinion of the company’s auditors on a " fair value". It further says company should not withhold any information which is detrimental to the decision of shareholders. whether to accept the offer or not. Presume I interpreted the meaning of the para in the section 64 correctly in relation to the matter.

Apart from the above, if a company wants its name be delisted, will it be based on sole discretion of board or should they seek majority vote of the shareholders? What I understood is, .its only sole discretion of the board, am I right?

pushpakumara wrote:
its only sole discretion of the board, am I right?

Generally Yes. But in this case they can not because BOI agreement is there.
Long story short, GLAS can not de-list till 2015.

OK, that is clear now.
What would happened if shareholder does not agree to the offered price and wanted to hold on to his / her share/s ?

Dileepa wrote:

pushpakumara wrote:
its only sole discretion of the board, am I right?

Generally Yes. But in this case they can not because BOI agreement is there.
Long story short, GLAS can not de-list till 2015.

section 69 of the companies act says...

section 69.
(1) Where a share is redeemable on a specified
date —

a.the company shall redeem the share on that date;

b.the share is deemed to be cancelled on that date;
and
c.from that date, the former shareholder ranks as an
unsecured creditor of the company for the sum
payable on redemption.

only option shareholder has is taking a court order against the notice before the notice date expired.

After the notice date expired he deemed to have sold his shares to the company..

Thanks @ Malanp.   

@ malanp and Dileepa

Hats off to both of you for the brief and admire the knowledge you have on the subject. Many thanks.

@ Kithsiri

Thanks to you as well Kithsiri for bringing up the topic.

Don;t know about chances of GLAS delisting here so soon as Dileepa pointing out.

But a very good ( common) discussion came out of it.

As Malanp pointed out, I believe company can make an offer ( to their discretion based on some formula which I am sure takes the market price and assets into consideation ) and if share holder does not accept before deadline that person can be held high and dry

Need to read further the document/act and maybe Marlanp can disclore the share price determining part.

Also my observations on GLAS below

http://forum.srilankaequity.com/t32308p75-cse-in-2014-and-fundamental-shares-that-have-underperformed#193636

slstock wrote:Don;t know about chances of GLAS delisting here so soon as Dileepa pointing out.

But a very good  ( common) discussion came out of it.  

As Malanp pointed out, I believe company can make an offer ( to their discretion based on some formula which I am sure takes the market price and assets into consideation )  and if share holder does not accept before deadline that person can be held high and dry

Need to read further  the document/act and maybe Marlanp can disclore the share price determining part.

Also my observations on GLAS below

http://forum.srilankaequity.com/t32308p75-cse-in-2014-and-fundamental-shares-that-have-underperformed#193636

With regard to price determining part, I presume there is no set or guided formula for this and it is on sole discretion of the management. If that is the case, I think it is a weakness in the system as company is always try to buy back at lower levels and not in favour of shareholders. Over to your malanp if you have time to enlighten us on the matter.