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Monday, May 9, 2011

LDEV investors miss rights due to postal delay

By Jithendra Antonio

Many investors in the outskirts of Colombo have missed to accept Lankem Developments (LDEV) rights entitlement or to deposit rights through renunciation to Central Depository System (CDS) due to the postal delivery delay that prevailed in the country.

Mirror Business learns that retailers have not received their ‘Letter of Allotment’ on Lankem Development Rights.

“Company secretaries, Corporate Managers & Secretaries Pvt. Ltd. have had received many complaints about it. I was asked me to check with the post office for my letter”, one Investor said adding that he lost the opportunity to sell the rights via renunciation as he didn’t receive the letter in time.

Another retailer at CSE said, corporate managers and Secretaries were reluctant to issue him a new ‘Letter of Allotment’ when requested quoting, as CSE has directed secretaries of the Lankem Developments to avoid issuing any duplicates of the ‘Letter of Allotment’

“If there was a postal delivery delay, they should have couriered it to the shareholders as a responsible entity.
Investors would have lost the opportunity to make money by renouncing, as the rights trading commenced last Friday,” he pointed out.

“If the letter was further delayed till May 13, the investors would have even lost the opportunity of selling their rights via renunciation”.

When Mirror Business contacted Lankem Development PLC secretaries, Corporate Managers & Secretaries Pvt Ltd, an official said the company cannot issue any new ‘Letter of Allotment’ to the shareholders, as CSE has directed to not to do.

Lankem Developments (LDEV) a subsidiary of Lankem Ceylon PLC, announced a 15 Rights for one share in March, in a bid to raise Rs.2.5 billion for the acquisition of 61.88% of Agarapatana Plantations Ltd and for further investments in plantations, leisure industry and hydro power plants.

The company was issuing a right at Rs.25, and when it commenced trading on Friday the right started to trade at Rs.3 and dropped to Rs.1.60 towards end of trading day whilst the Lankem Developments (LDEV) ordinary shares started to trade at Rs.30.50 and dipped to Rs.27.50 during market hours.

source - www.dailymirror.lk