PT&T bows to PSE, will settle outstanding penalties to resume trading

Philippine Telegraph and Telephone Co. (PT&T), among the companies vying to become the country’s third mobile telco player, said it would cooperate with the Philippine Stock Exchange on settling any remaining penalties in line with its bid to resume trading.

PT&T’s new management assumed a softer tone in a statement released Tuesday after the PSE, the previous day, said the company had repeatedly violated its disclosure rules.

Furthermore, the PSE said it was studying whether the actions warranted delisting, or the removal of PT&T from the roster of publicly traded companies.

“There has been some confusion/miscommunication but we will work closely and cooperate to the end with the PSE for the lifting of suspension. We wanted to inform our shareholders that PT&T is doing its utmost to comply with the requirements to lift the suspension to protect and pursue their interests,” the statement quoting PT&T’s management showed.

PT&T sought a voluntary trading suspension on Dec. 13, 2004, stating at the time that it could not meet the reportorial requirements of the PSE.

Ownership of the company changed hands last year, when businessmen Salvador Zamora II and Benjamin Bitanga acquired a controlling stake in PT&T.

The two have said that lifting the trading suspension— which would allow the entry of investors, including foreign partners that could help PT&T with its mobile telco ambitions—was a top priority.

In its initial statement last week, PT&T said it had fulfilled the requirements of the PSE and that it “should be allowed to resume trading and enact future plans of the new shareholders and management team.”

PSE president and CEO Ramon S. Monzon said in a statement that PT&T’s announcement “totally surprised us”, as it noted that PT&T had yet to fully comply.

It cited the nonsubmission of structured reports, nondisclosure of material information on share issuances, penalties imposed by the Securities and Exchange Commission as well as legal proceedings involving PT&T’s corporate rehabilitation.

“Our team is now evaluating if these multiple disclosure violations warrant the delisting of [PT&T] from the roster of listed firms of PSE,” Monzon said.

In its follow-up statement, PT&T explained that the misunderstanding involved its knowledge of penalties as of Aug. 31 this year.

It said the PSE had written the company on Sept. 3, 2018 “stating additional violations” from 2011 to 2018 amounting to P3.8 million.

“We paid what we were aware of as of Aug. 31, and if there are additional penalties we will settle those as well to comply. We wish to cooperate with the PSE and have the fervent desire to resume trading on our shares,” PT&T said.

Last Aug. 6,  the Regional Trial Court of Makati City Branch 66 approved the request of PT&T that it be allowed to exit from rehabilitation subject to compliance with certain requirements in line with the approved Rehabilitation Plan.

Under a court-approved 14-year rehabilitation plan, the P8.8 billion debts from its creditors would be paid in redeemable serial preferred shares of PT&T.