PSE lifts trading suspension of LR shares
MANILA, Philippines – After a three-day trading suspension for an erroneous cash dividend disclosure, the Philippine Stock Exchange allowed Friday a resumption of trading in shares of Leisure & Resorts World Corp. as the gaming firm agreed to absorb trades carried out on the basis of wrong information.
In a letter to the stock exchange, LR said that as a “sign of good faith” and as “restitution,” the company would offer to buy back and sell back at the same price that affected investors traded on Monday.
When the company erroneously disclosed a cash dividend of 40 centavos instead of 4 centavos as approved by its board of directors, trading in LR shares surged by about 15 times larger than the normal daily turnover as some investors jumped on the hefty dividend play. Swamped with complaints on the matter, the PSE suspended trading in LR shares starting Tuesday pending resolution of the problem.
“The company admits that the erroneous disclosure was a result of a clerical mistake and that it had no willful and deliberate intention to affect its stock price,” LR corporate secretary and compliance officer Raul Gerodias said in a letter to the PSE dated July 30.
“We shall endeavor to be vigilant and cautious in filing all succeeding reports and disclosures required,” he added.
In another letter dated August 1, Gerodias informed the PSE that LR had finalized some buying and selling of shares in line with the avowed “restitution.” LR bought about 1.96 million shares valued at about P15.95 million and sold about 125,500 shares valued at P1.01 million.
“We undertake to address any remaining issues which may arise as a result of the implementation of the buy-back and sell-back,” Gerodias said.
“In the event that there will be other investors, stockholders and interested parties who have traded LRWC shares on 29 July 2013, we wish to extend our standing offer to buy back and sell back those shares upon verification and under the same terms and conditions approved by the Exchange.”
LR thus requested the lifting of the trading suspension which the PSE granted effective Friday (August 2) at 9 a.m.
