Yak & Yeti opts for de-listing

The Yak & Yeti Hotel is trying to get de-listed from the Nepal Stock Exchange (NEPSE). However, it is yet to receive NEPSE's green signal. "It became difficult to follow all the regulations for us," said Mahendra Shrestha, chief of the hotel's human resource department. "That's why we wanted out from NEPSE." As per regulations, the general public should hold 30 percent of the shares of a public limited company. "We don't want additional capital," said Shrestha. "Why should we add more shareholders?" As of now, the promoters of the hotel hold 99.67 percent of the stock.
"We could have increased the capital if there were plans for expansion of the hotel or for new projects," said Shrestha. "That is why we're not in a position to follow this rule." The hotel had submitted an application to NEPSE two years ago to get de-listed. But NEPSE hasn't made any decision in this regard. With NEPSE delaying the decision, the hotel hasn't paid the renewal fee to the stock exchange.

NEPSE said that it cannot de-list any company on the basis of an application. "We cannot de-list the company as per their request," said NEPSE spokesperson Shambhu Pant. "We've sent a letter to the hotel to this effect." According to Pant, it has asked the hotel about the status of the general shareholders. "The hotel hasn't clarified what will happen to the general shareholders after it is de-listed from the NEPSE," said Pant. "We can't say anything until we get a reply from the hotel."

As per regulations, a listed company can be removed if it fails to submit its report to the stock exchange for three consecutive years. Till now, 43 companies have been de-listed from NEPSE. Since a public limited company has to publish its report annually and its business has to be transparent, the Yak & Yeti wants out from NEPSE, said a source at NEPSE. According to Shrestha, management hasn't decided to turn the hotel into a private limited company. "Our board has only decided to get removed from NEPSE," said Shrestha. "If needed, it can be made into a private limited company later," he added. "We desired to be de-listed from the NEPSE," said Shrestha." After that, we will move ahead as per the suggestions of all the shareholders."As of now, the Yak & Yeti has around 130 shareholders.
Source:Kantipur