spot_img
27.7 C
Philippines
Friday, March 29, 2024

LBC still has options on follow-on offering

- Advertisement -

LBC Express Holdings Inc. of the Araneta Group can re-submit its application for a follow-on offering with the Securities and Exchange Commission, after the courier company’s initial bid was rejected by the corporate regulator.

Sources from the SEC said this was one of the options that LBC Express had if it intended to push through with the share sale.

LBC Express, however, needs to a pay another filing fee to the SEC for another round of review and evaluation, sources said.

Another option is for LBC Express to seek a motion for reconsideration with the SEC, sources said.

LBC Express said in a reply to the SEC decision that it respectfully maintained its intention and desire to disclose all relevant information pertaining to the company which were required under the Securities Regulation Code. 

- Advertisement -

“In response to the SEC’s requirement, the company had taken steps and measures to expand the scope of the information on the legal proceedings involving certain members of the Araneta family. However, due to the timing of the submission, the SEC may not have had sufficient opportunity to consider these additional and expanded disclosures,” the company said.

“The company hopes to continue engaging with both SEC and PSE [Philippine Stock Exchange] to determine its options given the SEC order, and hopefully arrive at a resolution addressing the concerns of the regulators, the company and its stakeholders,” it said.

The SEC on Tuesday rejected the P1.2-billion follow-on offering of LBC Express after it failed to include in its registration statement the legal proceedings the Aranetas who were the major shareholders of the company and the status of its application with the PSE.

The SEC said LBC Express willfully omitted the details of the pending criminal and administrative cases filed by Bangko Sentral ng Pilipinas and Philippine Deposit Insurance Corp. against members of the Araneta family.

“Based on records, the Aranetas are the control persons of LBC through LBC Development Corp. which is wholly owned by the Aranetas. The significance of the subject cases necessitates a full and fair disclosure, which LBC failed to do,” the SEC said.    

LBC Express filed with the SEC an application in October 2016 to sell 69.1 million shares with a proposed maximum offer price of P17 per share. Net proceeds from the offering will be used to fund general corporate purposes and working capital, including the expansion of retail and corporate business, information technology development and other corporate purposes.

- Advertisement -

LATEST NEWS

Popular Articles