ECONOMYNEXT – Sri Lanka listed companies which have oil palm farms in Malaysia hit by an interventionist listing rule of sell down shares held by the parent have said they are selling the land and asked to be remain listed for two more years.
Good Hope, Indo Malay, Selinsing and Shalimar are subsidiaries of Colombo listed Carsons Cumberbatch group that fell short of a 15 percent ‘minumum public float’ requirement of the Colombo Stock Exchange.
Good Hope said Carsons was restructuring the Malaysian firms.
Malaysia’s Selangor region was now seeing urbanization and industrialization and the land now had commercial value. Meanwhile palm oil prices had collapsed after a commodity bubble was pricked when the US Fed stopped printing excess volumes of money.
The firm wanted to sell the land and distribute the cash to shareholders. At the moment the market value of the stock was higher than the net asset value of the land.
Good Hope it had applied to the regulator to remain listed for a further two years until the restructuring was complete.
Good Hope was incorporated in 1910, when Sri Lanka rupee was fixed under a currency board and the island was a budding financial centre of the British Empire.
After independence however a money printing central bank started to destroy the currency as well as salaries and financial savings of the people. Draconian exchange and trade controls were brought in ending any hope of the island becoming a financial centre.
Singapore and Hong Kong, which have modified and orthodox currency boards instead became financial centres.