Payment mulled for shareholders of delisting firms
THE Philippine Stock Exchange, Inc. (PSE) is considering an amendment to market rules that will require companies that breached their public float to pay shareholders who have already tendered their shares before a tender offer extension.
“One of our proposed amendments, which was already approved by the board for public comments, is if a company breaches the public float prior to the cross of the tender offer, it will be required to file and pay for that,” PSE President Ramon S. Monzon told reporters on the sidelines of a forum in Taguig City last week.
“If the company already met the threshold and it wants to extend, then you can extend. But you should pay first those who have already tendered their shares,” Mr. Monzon added.
According to Mr. Monzon, the proposed amendment came up after the delisting move of conglomerate Metro Pacific Investments Corp. (MPIC).
“Our rule is 95% threshold,” Mr. Monzon said, citing as an example MPIC, which got 96.87% of total shares during its initial tender offer but extended and obtained an additional 0.3%.
“But they held up payments for the 18.7% [of total shares]. The company should pay first those who have tendered based on the original commitment,” he said.
“Every time we change our rules, we have to submit it for public comments, then submit [it] to the Securities and Exchange Commission (SEC). After public comments, we look at the comments then we submit to the SEC for final rule,” he added.
During its delisting process, MPIC extended the tender offer period for its shares until Sept. 19 from Sept. 7 to give more time for minority investors to decide.
“The decision of the bidders to extend the tender offer period is to provide the remaining MPIC shareholders, who missed the deadline on Sept. 7, 2023, more time to fully appreciate the recent developments on the delisting of MPIC and make a decision to participate in the tender offer,” the company previously said.
The PSE last week approved MPIC’s delisting as the conglomerate completed its P28.4-billion tender offer to acquire the remaining shares held by minority investors. The company’s shares were suspended as its public float went below the required minimum level for listed firms.
In August, majority shareholders of MPIC agreed to voluntarily delist the company from the stock exchange.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave
