The Philippine Stock Exchange said Thursday it rejected the lifting of trading suspension on soft drinks maker Pepsi-Cola Products Philippines Inc. to facilitate its delisting.
It said it denied the request of Lotte Chilsung Beverage Co. Ltd. to remove the trading suspension of PCPPI’s shares to enable to it to sell on a block sale the shares tendered by minority investors.
The PSE said lifting PCPPI’s trading suspension would be in violation of Revenue Regulation No. 16-2012 of the Bureau of Internal Revenue, which provides that trading of shares of a publicly-listed firm that is not compliant with the 10-percent minimum public ownership requirement would be subject to a final tax at either 5 percent or 10 percent on the net capital gains and documentary stamp tax.
The public float of PCPPI dropped to 2.11 percent, after Lotte Chilsung conducted a tender offer in June, prompting the PSE to implement a trading suspension of the company’s stock.
The board of PCPPI approved in September the voluntary delisting of the common shares of the company from the main board of the exchange.
PCPPI filed with the PSE a petition for voluntary delisting, including a tender offer plan to be conducted by Lotte Chilsung.
The tendered and accepted shares are supposed to be crossed via block sale through the facilities of the PSE on Oct. 26 unless the tender offer period was extended.
The PSE said the tender offer report prepared by Lotte Chilsung did not make any reference to the BIR’s RR No. 16-2012 regarding the tax treatment of sales, barters, exchanges or other dispositions of shares of stock of publicly-listed companies whose public ownership levels fall below the mandatory MP level.
“The exchange wishes to remind all listed companies that it is imperative for them to ensure that all corporate actions are done in compliance with applicable laws, rules, and regulations and that all material information be properly disclosed and disseminated to the investing public. A similar obligation is likewise imposed upon any other person or entity who may have transactions involving listed companies,” the PSE said.