PSE extends suspension on trading of PAL shares

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THE Philippine Stock Exchange has approved PAL Holdings, Inc.’s request to extend its trading suspension until Jan. 11, to give the company more time to file the necessary disclosures in relation to its planned quasi-reorganization.

“The present request for extension of trading suspension is made in order to allow the company to make the necessary disclosures requested by the Exchange in relation to the number of the Corporation’s issued and outstanding shares resulting from the amendments of the par value of its shares and the issuance of new shares,” the company said.

The extended trading suspension will run from Jan. 10 to 11.

PAL Holdings, which operates flag-carrier Philippine Airlines, initially sought for a voluntary trading suspension from Jan. 3 to 9, in line with the Securities and Exchange Commission’s approval to decrease PAL Holdings’ authorized capital stock to P13.5 billion from P30 billion, resulting from the decrease in par value of each share to 45 centavos from P1. 

The SEC further approved the increase in par value of each share to P1 from 45 centavos, as a result of the decrease in the number of shares corresponding to the authorized and subscribed capital stock of the company.

The company also secured approval for the valuation of shares for a proposed share-swap transaction with Zuma Holdings and Management Corp. The transaction will allow PAL to issue 19 shares for each Zuma share surrendered.

With this, PAL Holdings will issue a total of 1.65 billion shares from its authorized but unissued capital stock to Cosmic Holdings Corp. and Horizon Global Investments Ltd., which own 60% and 40% of Zuma, respectively.

Zuma is the majority owner of Air Philippines Corp., which is an affiliate of PAL Holdings.

PAL Holdings’ capital restructuring looks to clean up the company’s balance sheet, as it seeks the entry of a new investor group. The company announced as early as 2014 that it is talking with potential investors to help manage its fleet.

The company swung to a net loss of P4.95 billion in the first three quarters of 2017, from a P2.55 billion net profit recorded in the same period in 2016. Revenues, meanwhile, climbed by 16% to P98.6 billion during the same period.

PAL Holdings’ last trading price was at P5.15 per share, recorded last Dec. 29, 2017. — Arra B. Francia