Shareholders ask bus company to buy back shares

Some 200 shareholders of bus service operator Yangon Urban Public Transportation Company (YUPT) are calling on the Yangon Region government to buy over their shares in the company.

This comes after a shareholder uprising over the company’s lack of profit and leadership selection disrupted YUPT’s annual general meeting in late October.

Last weekend, YUPT began collecting the names of shareholders who want to sell back their shares in the company.

“I operated buses under Ma Hta Tha [Yangon’s old bus system] and I was really interested in it. And under Ma Hta Tha’s replacement, the Yangon Bus Service, I also believed that the business would succeed. But because of poor management, we want back our money in order to protect our interests. So we are asking the regional government to buy back our shares in YUPT. As far as I know, not all shareholders will withdraw. I invested K90 millions in YUPT and now I want to sell K70 million worth of my shares. If the company can improve then I will invest again,” said U Htun Oo, a YUPT shareholder.

A YUPT spokesperson says the company will collect them names of the shareholders and forward them to the regional government.

“As far as I know, nearly 200 shareholders want to sell their shares back to the company. YUPT has 289 share holders who they invested a total of K5 billion at K100,000 per share. The company’s paid up capital is K40.6 billion, of which K35 billion came from the government. We run 900 buses as part of the Yangon Bus Service,” said YUPT General Manager U Maung Maung Lwin.

Last Friday, 202 shareholders submitted their names to have their shares sold back to the regional government.

“Two of the shareholders met with Yangon Minister of Electricity, Transport and Communication Daw Nilar Kyaw about the government buying back our shares. She said that the government will do its best, but we don’t know yet whether the government or the company will buy back the shares,” said YUPT shareholder Ko Maung Maung.

Ko Maun Muang says he invested K18 million in YUPT and now wants to sell back 160 shares worth K16 million.

“Actually, I don’t want to be involved in the company anymore, but I’m leaving K2 million in YUPT. For the rest of K16 million, I am requesting the government to pay me back including some kind of profit for three years I was involved in the company,” he said.

Secretary of Yangon Region Transport Authority (YRTA) U Maung Aung said the government will act according to procedure for buying back the shares.

YUPT is the largest bus company under the Yangon Bus Service.

Because the annual general meeting on October 30 was cancelled and share holders asked the government to hold another meeting as soon as possible to choose a new chair and board of directors.

YUPT has nine directors, four of whom are assigned directly by the regional government, and another five selected by shareholders.

Shareholders are unhappy with the current chair as they think he does not have enough experience with public transportation to oversee the company.

and they thought that the chairman is not deserve with this position because he is not experience in public transportation and can’t manage the business well.

On November 29, YUPT shareholders chose seven representatives who will be voted for to select five for the board of directors.

Source: Myanmar Times

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