SEC suspends Ever Gotesco’s permit to sell securities

 Economy
Jul 072013
 
SEC suspends Ever Gotesco’s permit to sell securities

MANILA, Philippines – Shopping mall developer and operator Ever Gotesco Resources & Holdings Inc. has been barred from selling shares due to its failure to conduct a shareholders’ meeting. In a memorandum, the Philippine Stock Exchange said the Securities and Exchange Commission ordered the suspension of Ever Gotesco’s registration of and permit to sell shares. “The records on file with SEC show that Ever Gotesco violated for the fourth time the Securities Regulation Code…for its failure to hold its annual stockholders’ meeting in 2012,” PSE said. As the SEC issued its resolution on May 16, Ever Gotesco’s permit to sell shares is suspended for 60 days from the date of receipt of the SEC order. The PSE started a trading suspension on Ever Gotesco’s shares on Friday. Ever Gotesco, which is controlled by the Go family, was incorporated in 1994 focusing on the construction of shopping malls and leasing them out to commercial tenants. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Its malls are primarily leased out to Ever Department Store and Supermarket, cinemas, banks, amusement centers, food shops, specialty stores, boutiques, drug stores, service shops, gym and sporting facilities. The listed company operates two malls: Ever Gotesco Commonwealth Center and Ever Gotesco Manila Plaza. Subsidiary Gotesco Tyan Ming owns and operates Ever Gotesco Ortigas Complex. In 2009, Ever Gotesco and subsidiary Gotesco Tyan Ming Development Inc. entered into a compromise agreement with creditor banks of its foreclosed properties pending court cases. In the first quarter, Ever Gotesco Read More …

SEC seeks reversal of CA ruling on John Hay condotel sales

 Economy
Jul 032013
 
SEC seeks reversal of CA ruling on John Hay condotel sales

MANILA, Philippines – The Securities and Exchange Commission (SEC) has sought a reversal of the Court of Appeals’ (CA) decision that allowed Camp John Hay’s private developer to sell condotel units. In a statement, the SEC said it filed on June 28 a motion for reconsideration regarding the CA’s ruling that favored Camp John Hay Development Corp. (CJHDevCo) and Camp John Hay Suites Corp. (CJHS). SEC chairperson Teresita J. Herbosa said they “hope that CA finds merit in the arguments presented by the SEC in its motion for reconsideration.” “Otherwise, the CA decision, as it stands presently, hamstrings the SEC’s efforts at weeding out investment schemes not registered with the SEC to the detriment of the investing public,” she added. Last month, the appellate court allowed the private developer of Camp John Hay in Baguio City to proceed with the sale of securities for the operation of The Manor Hotel. The CA’s Sixth Division granted the petition of CJHDevCo, which permanently enjoined the SEC from implementing its cease-and-desist order against the sale. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The case is just one of the latest in the SEC’s continued battle to safeguard the public from falling victim to unlawful business schemes,” the corporate regulator said. Until CA resolves the motion for reconsideration, the cease order against CJHDevCo and CJHS remain effective, SEC said. State-run Bases Conversion and Development Authority earlier claimed that the sale of the units of The Manor and The Suites with leaseback or Read More …

PSE drums up interest in ETFs

 Economy
Jun 172013
 
PSE drums up interest in ETFs

MANILA, Philippines – The Philippine Stock Exchange (PSE) is drumming up the market’s interest in its new investment product – the exchange-traded funds (ETF) – set for launching this year. In a memorandum, the operator of the country’s sole stock exchange said it will hold a seminar about ETFs on June 28. “The forum is intended to bring together participants, fund managers, investors and other stakeholders in order to introduce investing in ETFs and to discuss the latest updates in the product,” PSE said. “It also aims to inform the participants on the rules and regulations relevant to ETFs,” it added. Industry experts will discuss how ETFs differ from other types of investments and how stakeholders can take advantage of the new investment scheme, PSE said. Late in March, the Securities and Exchange Commission (SEC) gave its partial nod to the guidelines that will allow the launching of ETFs. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 ETFs are securities and investment instruments that monitor a commodity of assets like an index fund but trades like a normal stock in an exchange. PSE president and CEO Hans B. Sicat earlier said the new product will allow investors to go beyond just cash equities. So far, PSE has 254 listed firms and 134 active trading participants. ETFs are seen to offer several advantages and investment options to investors, including liquidity especially for those who cannot directly access specific sectors in the market due to a country’s specific regulatory environment. At Read More …

SEC moves to protect minority shareholders in takeovers

 Economy
May 262013
 
SEC moves to protect minority shareholders in takeovers

MANILA, Philippines – The country’s corporate regulator has come up with new rules to protect minority shareholders in companies subject to takeovers. In a memorandum, the Securities and Exchange Commission (SEC) formulated the Guidelines on the Conduct of Valuation and Issuance of Fairness Opinion for investors wanting to acquire a listed company. The regulations aim to “increase the reliability of fairness opinions being issued prior to the conduct of mandatory tender offer,” SEC said. It was also issued to align SEC’s rules with best practices in other jurisdictions, it added. The Securities Regulation Code requires that the price of the minority’s stocks subject to mandatory tender offer be “supported by a fairness opinion provided by an independent financial advisor or equivalent third party.” A mandatory tender offer is triggered when an investor accumulates more than 51 percent of the total outstanding shares of a listed company. The acquiring entity should then offer to buy all shares held by minority stockholders. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Given the new rules, only independent firms accredited by the Philippine Stock Exchange can conduct valuation and issue fairness opinions, SEC said. The regulator also issued several measures to ensure investor protection as shares are valued. “An expert shall use more than one valuation methodology and compare the values derived from using different methodologies to minimize the risk that opinion is unreliable,” SEC said. “If an expert’s valuation of a company differs from the price of the company’s securities prior to Read More …

SEC okays P9.68-B AUB IPO

 Economy
Apr 232013
 
SEC okays P9.68-B AUB IPO

MANILA, Philippines – Commercial lender Asia United Bank (AUB) of the Rebisco Group has moved closer to debuting in the local bourse through a P9.68-billion initial public offering (IPO). The Securities and Exchange Commission (SEC) on Monday approved the listing of AUB, which will be the second IPO in the local stock market this year. In an en banc decision, the corporate regulator allowed AUB to sell 88 million shares, including an over-allotment option of eight million shares, at a maximum price of P110 per share. Hence, the IPO will generate as much as P9.68 billion for the lender. The final price of the shares up for sale will be announced on May 3, with the offer period to start on May 7 and end on May 14. AUB said its shares will be listed on the Philippine Stock Exchange on May 17. It will be the second IPO this year, following the P3.2-billion share sale of thrift lender Philippine Business Bank in February. AUB is owned by a consortium of Filipino industrialists, Taiwanese investment banks and Singapore venture capitalists. Republic Biscuit Corp. (Rebisco), the Philippines’ leading manufacturer, distributor, and exporter of snack food products, owns 44 percent of AUB. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “AUB has evaluated its capital in light of its business strategy and determined that the offer would further solidify the bank’s capital adequacy and financial strength and, more importantly, allow AUB to pursue its strategic growth initiatives,” the lender said. Specifically, Read More …

Exchange-traded funds await SEC approval

 Economy
Feb 072013
 
Exchange-traded funds await SEC approval

MANILA, Philippines – The Securities and Exchange Commission (SEC) has yet to approve the rules that will govern the listing of exchange-traded funds (ETFs). “Still under discussion,” SEC commissioner Ma. Juanita E. Cueto said in a text message when asked if corporate regulators have approved the guidelines. The SEC was scheduled to meet on Feb. 6 to deliberate on the proposed listing rules for the new investment instrument. An ETF is defined as a security that monitors the index, a commodity of assets like an index fund, but trades like a normal stock in an exchange. Late last month, the Philippine Stock Exchange (PSE) submitted to the SEC its proposed rules that will govern the listing and trading of ETFs after it gathered public comments. At least three firms, First Metro Investment Corp. of the Metrobank Group, Sy-led BDO Unibank Inc. and Bank of the Philippine Islands of the Ayala conglomerate have expressed plans to offer ETFs. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 PSE president and CEO Hans B. Sicat earlier said ETFs will provide several advantages and investment options to investors including liquidity, especially for those who cannot directly access specific sectors in the market due to a country’s specific regulatory environment. The creation of an ETF would allow investors more investment options aside from the existing stocks in the market. The proposed ETF listing rules, which is governed by the general ETF guidelines issued by the SEC in October, provides for transparency and investor safeguards Read More …

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