eTelecare seeking to be delisted from PSE
Posted on September 10th, 2009
The eTelecare Global Solutions Inc. is seeking to be delisted from Philippine Stock Exchange. The business process outsourcing (BPO) firm said the effectivity date of its delisting is on November 9, 2009, this is in preparation for its upcoming merger with Stream Global Services Inc. of Boston.
Michael Montero, eTelecare vice president for tax and legal affairs, gave assurance to the PSE that the delisting would not prejudice the interest of investors.
Earlier, eTelecare through its indirect parent company EGS Corp. announced that it had entered into a definitive agreement with Stream Global Services to merge via a share swap. In the said agreement, Stream will be owning 57.5 percent of the combined entity while the Ayalas’ EGS will have the 42.5 percent.
It was already approved earlier by eTelecare shareholders, an amendment to the company’s by-laws increasing the par value of its stocks from P2 to P812,500 per share and dreading the number of shares comprising I authorized capital stock from 65 million to 160 shares under a “reverse stock split†transaction.
There is condition for the shareholders’ approval however – the company would not issue fractional shares and that fractional shares resulting from any change in par value or any corporate action should be paid in cash.
The affected shareholders will be paid an amount equivalent to $9 multiplied by the total number of shares held prior to the effectivity of the amendments.
While it may seek to be delisted from the PSE, eTelecare acquired a leading global platform plus a backdoor listing entry into the New York Stock Exchange with its merger with Stream.
