Victorias Milling trading suspension may be lifted 1H 2012
MANILA, Philippines—Local sugar giant Victorias Milling Corp. expects to resume trading on the Philippine Stock Exchange this first semester, ending a 15-year trading freeze sanctioned by corporate regulators during the Asian currency crisis.
In a disclosure to the Philippine Stock Exchange on Monday, VMC reported that it had received an order from the Securities and Exchange Commission favoring the company’s petition to lift the trading suspension that was in effect since October 10, 1997.
The PSE, however, said the trading suspension would remain in effect until VMC has settled all accrued obligations to the local bourse.
VMC chair Wilson Young, in an interview, said the company intended to settle such obligations “as soon as possible” and was thus expecting the PSE to lift the trading suspension within the first half of 2012.
“The lifting will eventually benefit VMC and its shareholders because it will give a market value indication and mechanism for investors to look at VMC as an investment opportunity,” Young said. “For VMC this should encourage VMC convertible note holders to convert to equity which should strengthen VMC financial stability.”
VMC has about P1.98 billion worth of such outstanding debt notes that are convertible into equity.
Young noted that VMC, which was now on its 8th year or halfway through its creditor-driven rehabilitation program, had reverted to a positive income position in the last five years.
VMC’s controlling stockholding is the Lucio Tan group of companies which provided a crucial lifeline to the sugar firm after it was crippled by the Asian currency turmoil. About 24 percent of its stocks, however, are held and traded by the public.
The company was last traded at P0.29 in October 1997, giving it a market capitalization of P587.14 million.
