MANILA, Philippines–Financial services group Maybank ATR KimEng Financial Corp. (MATRKE) has boosted its public ownership to 10.25 percent from 0.89 percent, thus complying with the minimum public float required to remain listed on the Philippine Stock Exchange.
MATRKE disclosed on Thursday that key shareholders have placed out a total of 100 million shares at P4.38 per share to foreign firms. The equity deal was priced at the same level at which the controlling shareholder Maybank Kim Eng Holdings Ltd. paid minority shareholders under a tender offering in November 2011.
Maybank Kim Eng sold 50 million of its common shares in the local company to Wah Hong Investment Ltd., a Hong Kong company. Another 50 million of issued and outstanding common shares in MATRKE were sold to Lotus Asset Management (BVI) Ltd., a British Virgin Island registered firm.
The Maybank Group is Malaysia’s regional financial services leader with an international network of over 2,200 offices in 18 countries while the Maybank Kim Eng group comprises securities and investment banking businesses.
The PSE requires a minimum public ownership of 10 percent for companies to remain in its roster, aiming to provide a fair and efficient facility for price discovery and to ensure that sufficient liquidity exists in the stock market.
By the first trading day of 2013, the PSE will impose a trading suspension on the shares of non-compliant listed companies for a period of not more than six months or until June 30, 2013. If a listed company remains non-compliant after June 30 next year, it will be delisted from the local bourse.
The Bureau of Internal Revenue, as contained in its recent rule issuance relating to the minimum public ownership rules, will impose capital gains tax and a documentary stamp tax (DST) on every sale, barter, exchange or other disposition after December 31 of shares of listed companies which are not compliant with the requirement.
By 2013, a capital gains tax equivalent to five percent of the net capital gains amounting to not over P100,000 will apply while a 10 percent capital gains tax will apply on the excess. Also, DST of P0.75 on each P200 of the par value of the stock will also be applied on the sale.
In contrast, trading of shares listed and traded at the PSE are subject only to stock transaction tax equivalent to 0.50 percent of the transaction value levied on the seller.
Maybank ATR Kim Eng’s compliance with the requirement brings down to 11 the companies facing suspension by the first trading day of 2013. These are Alphaland Corp., Manchester International Holdings Unlimited Corp., Southeast Asia Cement Holdings Inc., PAL Holdings, Inc., Allied Banking Corp., San Miguel Brewery, Inc., PNOC Exploration Corp. and San Miguel Properties Inc.
On the other hand, three on-compliant companies are already suspended from stock market trading: Philcomsat Holdings Corp., Cosmos Bottling Corp. and Nextstage Inc.