ALPHALAND Tower on Ayala Avenue. FILE PHOTO
MANILA, Philippines — Businessman Roberto V. Ongpin is determined to challenge an order issued by the Philippine Stock Exchange to delist Alphaland Corp. while assuring stakeholders that it would be business as usual in all of the property developer’s projects such as upscale membership clubs in Makati and Balesin Island.
He said he planned to seek a reconsideration of the order and would appeal to higher authority, such us the Securities and Exchange Commission or even the courts, if it is denied.
In a statement issued on Wednesday, Ongpin, who was traveling to Europe, said that notwithstanding the PSE decision to delist Alphaland, a compromise with estranged partner Ashmore group would proceed.
Ongpin and Ashmore agreed to settle their dispute last June. In exchange for certain assets of Alphaland, Ashmore will exit the company and pay the sum of P2.5 billion in cash.
On Monday, the PSE issued an order to delist Alphaland and issued a ban on three of its top executives, including Ongpin who is company chairman, from sitting on the board of any company applying for listing on the stock market. The PSE also required Alphaland to make a tender offer to minority shareholders within 60 days from receipt of the delisting order.
This involuntary delisting will take effect on the trading day immediately after this 60-day window, whether or not the tender offer had been completed, the order said.
Since the disqualification of Alphaland’s officers was clearly prospective in application, none of the existing listed companies in which Ongpin is an officer and/or director — such as Philweb Corporation and Atok-Big Wedge Co., Inc., where he is both Chairman and CEO – was seen being affected.
“The prohibition only prevents the disqualified officer from being a director or officer of a company applying for listing,” Ongpin said, adding: “It must be emphasized that the PSE decision is not final and executory and is subject to the appeal process….”
Ongpin said Alphaland would move for reconsideration of the PSE decision. If the PSE would not reconsider, Alphaland intends to appeal to the Securities and Exchange Commission. Beyond the SEC, Alphaland has vowed to further elevate it to the courts, first by appealing to the Court of Appeals and then, if necessary, to the Supreme Court.
“Needless to state, until the mentioned appeal process is exhausted, the PSE decision does not become final and executory. In the meantime, during the appeal process, the status quo remains,” Ongpin said.
Trading in Alphaland shares had already been suspended by the PSE since January 20 this year, during which he noted that the company “proceeded with its business and has completed, and is in the process of completing, its various projects.”
“Alphaland’s membership clubs, namely The City Club at Alphaland Makati Place and Alphaland Balesin Island Club, will be totally unaffected and their operations will continue to run as usual,” he said.
Even assuming that the PSE decision is upheld by the Supreme Court, Ongpin said, all it would mean is that Alphaland would become a private company and no longer subject to the jurisdiction of the PSE.
“I would like to assure the investing public that even as a private company (and Alphaland has practically operated as such for the last eight months without interruption in our construction activities), Alphaland will continue to live on. Alphaland will certainly complete all of its present and existing projects (including the Alphaland Makati Place project) as well as conceptualize exciting future projects (like the Alphaland Baguio Mountain Log Homes project),” he said.
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