Posted on November 18, 2012 10:00:16
PM
GOTIANUN-LED Filinvest Development
Corp. will not delist despite having a public ownership level short of the
bourse’s 10% minimum, as it plans to pursue private placement of shares to meet
that requirement, the company’s top official said in a recent interview.
“No, it is not part of our plans,”
Lourdes Josephine G. Yap, Filinvest Development president and chief executive
officer, said in an interview after a recent press briefing of Filinvest Land,
Inc., Filinvest Development’s property arm, at The Palms Country Club in
Alabang, Muntinlupa City, when asked if the conglomerate is plans to delist in
light of its deficient public float level.
DEADLINE LOOMS
Filinvest was one of 27 listed firms
that had yet to comply with the Philippine Stock Exchange’s (PSE) 10% minimum
public ownership rule as of end-June, having a public float level of 3.35%.
Listed firms have up to yearend to achieve the minimum public float level or
else face penalties leading to forced delisting.
When asked what method Filinvest plans
to use to raise its public float, Ms. Yap cited “possible private placement.”
Last December, the holding firm said
it was in talks with possible investors for a possible private placement in
relation to PSE’s public float requirement, but these plans have yet to
materialize.
“We feel that companies that are
listed are under pressure to perform well thanks to the rules, and we are
actually one of the oldest listed companies now. We have a very long history
over the years,” she said when asked to explain why remaining listed was
important for her firm.
The company, however, may also ask PSE
for an extension of deadline to meet the public float minimum. “I understand
[PSE President Hans B.] Sicat announced something on extensions. We have to
find out what that discussion is, but definitely we do not want to delist. We
are intent on increasing our public float,” Ms. Yap stressed.
Earlier this month, Mr. Sicat reiterated
that PSE was open to discussions with firms deficient in public float that need
more time to comply with the rule, saying extension of deadline would be on a
“case-to-case basis.”
ANOTHER OFFERING PLANNED
After complying with PSE’s public
float rule, the company will likely follow up with a second, larger private
placement some time next year, Ms. Yap said. “We’ll work towards crossing 10%,
but a major one will follow, maybe next year, when those plans are in place,”
she said.
Filinvest, incorporated in 1973, is
engaged in mall, theater, and resort hotel operations; banking and financial
services; sugar farming and milling; as well as power generation, according to
information on PSE’s Web site.
A number of firms have voluntarily
delisted due to their deficient public float and more are expected to follow
suit for the same reason.
Pangilinan-led Metro Pacific Tollways
Corp., investment firm First Metro Investments Corp., and developer Eton
Properties Philippines, Inc., have informed PSE of plans to delist between next
month and January next year, joining Alaska Milk Corp., PLDT Communication and
Energy Ventures, Inc. and Chinatrust Commercial Bank (Philippines), Inc. that
had already left the stock exchange earlier this year, due to their decision
not to achieve the required public float.
Filinvest shares lost five centavos or
1.1% to P4.50 apiece on Friday last week from P4.55 on Thursday. -- Franz
Jonathan G. de la Fuente
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