After delisting, Calata says PSE should review rules
By Arra B. Francia, Reporter
CALATA CORP. said the Philippine Stock Exchange (PSE) should revisit its rules, saying its involuntary delisting should be a precedent for other companies who violate the same rules.
The embattled agribusiness firm has been suspended from trading its shares at the PSE since June 30 following multiple violations of disclosure rules.
“I think the rules should be revisited. Because what is happening to us is a precedent for other companies, when the competitors realize these are the rules – that you can be delisted immediately if there are problems, so the big companies can also be delisted,” Calata Chairman and Chief Executive Officer Joseph H. Calata said in Filipino during a press conference on Monday.
The company was also found to have violated the blackout rule, where a company’s directors and principal officers who have obtained material non-public information are prevented from trading their company’s shares within a prescribed period.
Mr. Calata said the PSE should instead penalize him should the violations pertain to his actions, rather than delisting the company which would affect all its shareholders. Around 70% of the company is held by the public.
“Ang nangyari satin, fault lang naman ng isang tao… sabihin na nating fault ko, bakit madadamay ang mga shareholders? Eh di parusahan nila ko (With what happened to us the fault is only with one person… Let’s say it’s just my fault, why should all the shareholders be affected. Then they should penalize me),” Mr. Calata said.
Mr. Calata cited the company’s struggle in complying with requirements needed to conduct an initial public offering (IPO), saying it took them two years to take Calata public.
“Ang stock market ng Philippines, parang isa ito sa may pinakakonting IPO na nagagawa. I think dahil sa, ang hirap mag-IPO (The Philippine stock market may have one of the fewest IPOs I think because it’s so hard to conduct an IPO),” he said.
Only four companies conducted IPOs at the PSE in 2016, raising a total of P48.1 billion. For 2017, four companies have so far publicly listed their shares, with Wilcon Depot, Inc. raising P7 billion, Eagle Cement Corp. with P8.6 billion, Cebu Landmasters, Inc. with P3.2 billion, and Chelsea Logistics Holdings Corp. with P5.8 billion.
During the same press conference, Mr. Calata unveiled plans to list the Calata shares on the global cryptocurrency exchange, where shareholders can trade other digital currencies such as Bitcoin.
“If a company issues digital tokens for its stocks, for example, the receiver of these tokens possesses the right to claim these stock in exchange for the tokens,” the company said.
According to the executive, shifting to digital currency would be the best option for the company, as conducting a tender offer which the PSE proposed would be impossible.
To conduct a tender offer, Mr. Calata said the company would need at least P1 billion in order to pay out all shareholders. This is much higher than the company’s retained earnings of only P400 million.
