AFP FILE PHOTO
MANILA, Philippines—Trading on holding firm NextStage Inc. was suspended on Thursday at the Philippine Stock Exchange in anticipation of a backdoor listing transaction.
This developed as the company’s board of directors approved a plan of merger with another entity for the “exclusive production, marketing and distribution of a product in the world market.”
The board likewise approved amendments to the company’s articles of incorporation, including the extension of corporate life, increase in authorized capital and change in corporate name.
A special stockholders’ meeting was set for Feb. 7 to approve these matters which, however, will have to be cleared by the Securities and Exchange Commission.
The PSE said that after a careful review of the disclosure submitted by NextStage, the above-mentioned transaction and corporate actions were covered by the rules on backdoor listing, which refers to the infusion of a privately held business into a publicly listed company. As such, trading was suspended pending the company’s submission of a more comprehensive disclosure on these corporate actions.
NextStage, which is trading under the ticker NXT, was incorporated in 1964 as Pacific Cement Co. Inc. and was engaged in the manufacture and trading of cement and related products. In 2000, it transformed into a holding company.—Doris C. Dumlao
RELATED STORY:
PSE clears NextStage for trading Tuesday