The Philippine Stock Exchange suspended the trading of San Miguel Food and Beverage Inc. after its public float fell below 10 percent following the completion of a share swap agreement with parent San Miguel Corp.
SMFB said in a disclosure to the stock exchange the Securities and Exchange Commission approved the increase in the company’s authorized capital stock to P12 billon from P2.46 billion.
The increase in the capital base enabled SMFB to implement the share swap agreement with San Miguel.
San Miguel earlier agreed to transfer 7.86 billion shares in San Miguel Brewery Inc. and 216.97 million shares or Ginebra San Miguel Inc. to SMFB as part of a move to consolidate the food and beverage business under one subsidiary.
SMFB in exchange will issue 4.24 billion shares to San Miguel.
“In view of the approval of the amendment of the articles of incorporation to increase the capital stock for SMFB, the share swap has been effected as of June 29, 2018 the same date of effective of the capital increase of SMFB,” San Miguel said.
The share swap agreement, however, caused SMFB’s public float to drop below the 10-percent minimum public ownership requirement on listed companies.
The PSE said the suspension of SMFB shares was temporary, citing that the non-compliance with the MPO requirement was a result of an ongoing restructuring plan.
SMFB also had a defined program to comply with the MPO requirement within the next six months, the local bourse said.
The PSE said the lifting of the temporary trading suspension was dependent on the company securing a favorable ruling from the Bureau of Internal Revenue on the appropriate taxes to be imposed on the trades of SMFB securities.
“Once a favorable BIR ruling/opinion is secured by the company, the exchange will lift the trading suspension. The exchange will apprise the investing public of further developments on the matter,” the PSE said.
Share price of SMFB closed at P62 Thursday.