Gaming firm resumes trading

MANILA, Philippines – After a three-day trading suspension, the Philippine Stock Exchange allowed Leisure & Resorts World Corp. (LR) to resume trading on Friday as the gaming firm agreed to pay for trades done on the basis of an erroneous cash dividend disclosure.

In a letter to the stock exchange, LR said that as a “sign of good faith and restitution,” it would offer to buy back from and sell back to affected investors shares traded on Monday at prices these shares were sold or bought.

When the company erroneously disclosed a cash dividend of 40 centavos instead of 4-centavos last Monday, trades on LR surged by about 15 times larger than the normal daily turnover as some investors jumped on the wrong dividend play. Swamped with complaints on the matter, the PSE suspended the trading of LR on Tuesday pending discussions on how to resolve this matter.

“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 the letter to the PSE dated July 30.

“We will endeavor to be vigilant and cautious in filing all succeeding reports and disclosures required,” he added.

LR shares traded between P7.99 and P8.41 per share on July 29, the day of the erroneous disclosure, before closing at P8.06 per share.

In another letter dated Aug. 1, Gerodias informed the PSE that LR had finalized some buying and selling of shares in line with the  promised “restitution.” LR, through wholly owned subsidiary AB Leisure Exponent Inc., 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. Doris C. Dumlao