Elite Diagnostic asks large shareholders to disclose plans after heavy trading

Elite Diagnostic Ltd has asked its large shareholders to disclose their intentions after another session of heavy trading in its shares on Friday, when 41.5 million units changed hands.

It was the latest volume session of the week for the otherwise thinly traded stock. On October 1, some 88.5 million units traded, and on October 6 some 83.9 million.

In an October 8 notice, the Kingston-based imaging company said a review of its top-10 shareholder list from the Jamaica Central Securities Depository showed one shareholder held more than 50 per cent of its issued ordinary shares from October 2 to October 6. Thereafter, that unnamed shareholder slid back to one-third of the 353.4 million total issued shares.

“No shareholder currently holds more than 50 per cent of the company’s issued ordinary shares. The company’s largest shareholder currently holds ordinary shares, representing approximately 38 per cent of the company’s issued ordinary shares,” the company said in a release on Friday.

The Financial Gleaner tried to contact chairman Steven Gooden, who did not return calls.

Friday gains, weekly loss

The stock closed 2.4 per cent higher on Friday but down 14 per cent for the week. Listed on the Jamaica Stock Exchange (JSE) Junior Market, it closed at $1.70, but sellers are unwilling to part with shares for less than $1.85, according to the sellers’ queue.

The company’s most recent list, dated June 30, showed no shareholder with more than 24.5 per cent of total shares. Excel Investments Inc., which the list shows as connected to Warren Chung and Neil Fong, held 24.5 per cent. NCB Capital Markets Ltd. followed with 18.7 per cent, and Steven Gooden held 10 per cent. The top 10 together held 77.3 per cent. Excel was the vehicle through which a group of private partners owned Elite before it went public.

Elite wrote to each shareholder with 20 per cent or more, asking for confirmation of holdings, beneficial ownership details, the purpose of the acquisition, whether more purchases are planned, and intentions on control.

It cited the Take-overs and Mergers Regulations, and the exchange’s Junior Market rules, which require anyone who acquires 20 per cent or more of a listed company to file a declaration of intention within 10 days.

Elite has informed the exchange and the Financial Services Commission and said it may make a further announcement once it receives the information.

Additonally the rules acquires any entity with 50 per cent or more of a listed company, alone or with others acting in concert, to make a mandatory offer to the remaining shareholders unless the regulator or exchange grants an exemption.

Elite operates imaging centres in St Andrew and St Ann. For the year ended June 30, it reported revenue up 2.0 per cent to $867.3 million and net profit down 14 per cent to $27.6 million. At Friday’s close, its market value was about $654 million based on the issued shares.

business@gleanerjm.com