SUMMARY
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MANILA, Philippines – The Philippine Stock Exchange’s (PSE) decision to delist property developer Alphaland Corporation from the bourse is “not final and executory” and does not mean the “demise” of the company.
Businessman Roberto Ongpin, the company’s chairman and CEO, made this statement on Wednesday, September 10, expressing concern that any misconception would affect Alphaland’s business.
“It must be emphasized that the PSE decision is not final and executory and is subject to the appeal process,” he said.
He said they intend to file for a motion for reconsideration of the PSE decision. If the exchange does not reconsider, he said they would appeal to the Securities and Exchange Commission. He said the courts were the last resort.
“Assuming the PSE decision is upheld by the Supreme Court, all it means is that Alphaland shall become a private company and no longer subject to the jurisdiction of the PSE,” Ongpin explained.
As a private company, Ongpin gave assurances that Alphaland would operate without interruption, complete its projects and launch new ones.
On Monday, the PSE issued a resolution on Alphaland’s delisting, citing repeated violation of disclosure rules.
It said shares of the company would be removed from its registry following completion of a tender offer.
“In order to protect the interests of the company’s retail/non-strategic shareholders as of January 23, 2014, the Exchange hereby requires the company or its principal shareholders to conduct a tender offer to all the company’s retail/non-strategic shareholders as of January 23, 2014…” PSE said.
“If the tender offer has not been completed within 60 calendar days from the company’s receipt of the decision, removal of the company’s shares shall take effect on the trading day immediately succeeding the end of 60-day period.”
Trading of Alphaland shares has been suspended since January 20.
The PSE barred Alphaland from re-listing within 5 years. It also disqualified Ongpin, Alphaland president Mario Oreta, as well as corporate secretary Rodolfo Ponferrada from becoming directors and/or executive officers in any company applying for listing.
Ongpin maintained that the company did not violate disclosure rules.
Alphaland was a joint venture between Ongpin and London-based Ashmore group, whose relationship turned sour over several disagreements, including Ashmore’s alleged unwillingness to fund the property company. (READ: Ongpin vs Ashmore: The real deal)
Ongpin accused Ashmore of “simulating” the sale of Alphaland shares to keep it listed on the PSE.
The PSE initiated involuntary delisting procedures against Alphaland for its “failure to submit full, fair, accurate and timely disclosures of material information” on the share sale. The regulator also said the company was not being transparent about cases involving it and its state of financial distress.
“The company’s actions and representations show a pattern of deliberate, conscious and willful intent to mislead the Exchange and the investing public,” the PSE had said. – Rappler.com
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