Paxys mulls over delisting

SCREENGRAB from www.paxys.com

Business process outsourcing (BPO) holding firm Paxys Inc. is bracing for a potential delisting from the Philippine Stock Exchange as its public ownership may fall below the requirement after a tender offer by its subsidiary.

In a report to the PSE Friday, Paxys said that, depending on the acceptance of the tender offer by Paxys NV, the holding firm’s public ownership could fall below the minimum public float level of 10 percent required of a company to continue listing on the local bourse.

If the public ownership were to fall below the minimum prescribed by the PSE, Paxys said it would have to apply for voluntary delisting without waiting for the local bourse to initiate involuntary delisting procedures.

Paxys is currently trading at the PSE under the ticker “PAX.”

“If PAX is delisted, its shares will no longer be traded in the PSE, affecting investors’ ability to liquidate their investments,” the company said, adding that capital gains generated from the subsequent sale or transfer would be subject to capital gains and documentary stamp taxes.

Paxys NV has proposed to acquire all shares held by minority shareholders, or up to 517.69 million shares, representing 45.07 percent of outstanding stocks at a price of P3.20 apiece. The offer will run from Sept. 1 to Sept. 29 this year and targeted to be crossed not later than Oct. 8.

Bulk of the holding firm’s cash reserves is held by subsidiary Paxys NV, which will make the tender offer that can pave the way for the BPO holding firm’s return to private hands.  Doris C. Dumlao