Chinatrust seeks shares delisting
Chinatrust Commercial Bank Corp. has asked that its shares be delisted from the local bourse amid the Philippine Stock Exchange’s (PSE) recent requirement for firms to increase their public float to at least 10 percent.
The thinly traded company said staying listed no longer figured in its long-term business plans.
About 99.4 percent of the bank’s shares are owned by its Taiwan-based parent, Chinatrust Commercial Bank Ltd.
“As such, the bank believes that, with its strong capital position, it will be able to pursue seamlessly its strategic objectives and deliver enhanced value to its stakeholders and valued clients without being a publicly listed entity,” the company said.
The company is not the first local firm to choose delisting over complying with the PSE’s 10-percent minimum public float.
Earlier this year, Keppel Marine Philippines Inc. announced that it would have its shares delisted from the bourse and that its Singaporean parent, KSI Investments, would buy out all minority shareholders in a tender offer.
“With a more simplified ownership structure and strong parent bank support, the bank can now execute its growth strategies faster and focus its resources and attention toward strengthening its foothold in its chosen markets,” Chinatrust Philippines president Mark Chen said.
Opened as a full-service commercial bank in 1995, Chinatrust Philippines has one of the largest branch networks among foreign banks in the country.
Chinatrust shares were not traded on Monday. The stock was last traded on Friday, when it closed at P19.50 per share.
