We write with reference to the editorial article published by Manila Standard on its website (manilastandard.net) on 22 January 2022, entitled “Congress must probe PSE, SEC for approving Citicore IPO,” written by Mr. Charlie V. Manalo (the “Article”) on the initial public offering of Citicore Energy REIT Corp. (the “Company”).
The Company strongly believes that the publication of the Article was ill-timed, casting doubt on the viability of the Company’s IPO, and has also undermined the integrity of the Securities and Exchange Commission (“SEC”) and the Philippine Stock Exchange, Inc. (“PSE”) who have approved the Company’s application on the basis of its compliance with applicable rules and regulations.
The SEC and the PSE are long established institutions in the Philippines, headed by competent and experienced officers, who have proven their competence in regulating and protecting the Philippine stock exchange market. Furthermore, The SEC and PSE have been instrumental in creating a robust, diverse, and profitable Philippine stock exchange market, which has largely contributed to the growth of the country’s economy. The Company emphasizes that its IPO underwent the stringent application process of the SEC and the PSE, which thoroughly reviewed the Company’s operational, technical and financial qualifications and capabilities. It is very unfortunate that the news article was published without taking the sides of the SEC and PSE who may have shed light regarding the Company’s qualifications and compliance with regulatory processes that lead to their approval on the Company’s applications.
With regard to the alleged violation of the Anti-Dummy Law (“ADL”), we would like to take this opportunity to provide you an update. The ADL Complaint was filed with the RTC of Lapu-Lapu City and the arraignment was initially scheduled on December 07, 2021. However, arraignment was moved as an omnibus motion filed by Megawide’s counsel remains unresolved. As such, Arraignment is re- scheduled to February 9, 2022 subject to the resolution on the pending Omnibus Motion. We have full faith in the country’s justice system and hopeful that this will be resolved favourably in time.
Additionally, the Company clarifies that its Board of Directors is composed of eight (8) qualified and experienced Directors, four (4) of whom are Independent Directors with no relation to the aforementioned case, with the necessary professional knowledge and expertise in energy, finance, and business to be able to successfully lead the Company.
In view of the foregoing, the Company demands a public apology from Mr. Manalo, and respectfully requests for the publication of this letter in full and if possible, the pull down of the Article for being unfair and for failure to get the side of the Company, SEC and PSE.
The Company looks forward to your cooperation and prompt response on this matter.
JAIME P. DEL ROSARIO
Vice President – Head of Legal Citicore Power Group