25 companies face delisting from PSE

The Philippine Stock Exchange has again warned that 25 companies could be delisted next year unless the firms meet the required 10 percent public ownership. 

 

“Listed companies that are non-compliant with the MPO (minimum public ownership) requirement have been given a grace period of up to December 31, 2012 to comply,” the PSE reiterated in a statement e-mailed to reporters during the weekend. 

 

The PSE would suspend non-compliant listed companies for six months from January 1 until June 30, 2013, after which company shares would be automatically delisted. 

 

In a memorandum released last January, the PSE said minimum public ownership will be raised to 10 percent to give a fair and efficient way of valuing company shares and to ensure sufficient liquidity in the market. 

 

“The MPO requirement is one of the governance initiatives that we believe will help democratize the ownership of listed companies and increase trading activity,” PSE president and CEO Hans Sicat was quoted as saying.   

 

“As the deadline for compliance with the rule is nearing, we urge investors to continue to update themselves of developments concerning listed companies that remain to be non-compliant up to this date,” he added. 

 

As of December 7, the PSE noted 25 listed companies remain non-complaint with the new requirement. 

 

Among the companies facing delisting are conglomerate San Miguel Corp.'s unit  SPC Power Corporation and San Miguel Properties Inc., as well as airline operator PAL Holdings Inc.

 

Alphaland Corporation,  Filinvest Development Corp., Maybank ATR Kim Eng Financial Corporation, and Synergy Grid & Development Phils. Inc. said they would comply with the 10 percent public ownership requirement by issuing shares through private placement. 

 

The looming deadline, however, has prompted companies like Eton Properties Philippines Inc., First Metro Investment Corporation, and Metro Pacific Tollways Corporation to go for a voluntary delisting and leave the exchange. 

 

In a recent issuance on the minimum public ownership, the Bureau of Internal Revenue said it will impose capital gains tax and a documentary stamp tax starting January 1 on every sale, barter, exchange or other disposition of shares of companies which are not compliant with the 10 percent requirement. 

 

After December 31,2012, a capital gains tax equivalent to five percent of the net capital gains amounting to not over P100,000 shall apply, while a 10 percent capital gains tax will apply on the excess.  

 

Also, documentary stamp tax of P0.75 on each P200.00 of the par value of the stock will also be applied on the sale.

 

In contrast, trading of shares listed and traded at the PSE are subject only to stock transaction tax equivalent to 0.50 percent of the transaction value levied on the seller. — Siegfrid Alegado/VS, GMA News