THE PHILIPPINE Stock Exchange has ordered the involuntary delisting of dormant holding firm Marsteel Consolidated Inc. from its bourse effective August 15 this year.
In a circular posted on July 16, the PSE said that a decision had been made to strike out Marsteel from its official registry as well as to impose penalties under its delisting rules following a series of non-compliance to reportorial requirements.
The PSE initiated the involuntary delisting of Marsteel last April 30, citing continuing violation of the revised disclosure rules.
Based on records of the exchange, Marsteel failed to submit structured reportorial requirements such as annual reports for the years 2006 to 2014 as well as the first to third quarterly reports for the years 2007 to 2014.
The local bourse already suspended the trading of Marsteel shares on May 21, 2007 due to non- submission of its annual report for the year 2006. Subsequently, the Securities and Exchange Commission issued in 2008 an order of suspension on the trading of the shares due to non-submission of the 2006 annual report, first to third quarterly reports in 2007 and other reportorial requirements.
In 2009, the SEC also revoked Marsteel’s registration of securities and permit to sell securities, citing continued non- submission of structured reportorial requirements.
Under the PSE’s delisting rules, the non-submission of reportorial requirements and the revocation of securities registration are among the grounds for the involuntary delisting of a listed company, and, when applicable, the imposition of the relisting prohibition.
Apart from the prohibition from re-listing, among the dire consequences of involuntary delisting is that all directors of the delisted company are barred from holding a position in any listed company for five years afterwards.
Under the involuntary delisting process, the issuer can no longer make a tender offer to the minority shareholders. About 21 percent of Marsteel’s stocks are held by the public.
Led by the Martel family, Marsteel is primarily engaged in investment holding activities. Its investment portfolio is composed of holdings in companies involved in commercial operation, development and pre-operating stages.