In big comeback, Tiu-led Greenergy sees share price swell by 319%
Shares of Antonio Tiu-led Greenergy Holdings Inc. surged by about 319 percent on Monday upon the lifting of a three-year trading suspension imposed when its bank accounts were frozen at the height of an investigation on the allegedly unexplained wealth of then Vice President Jejomar Binay.
The Philippine Stock Exchange suspended trading on Greenergy shares on May 13, 2015 following an order issued by the Court of Appeals to freeze the bank accounts of the company, its subsidiary Sunchamp Real Estate Development Corp., and its chair and president Tiu.
At that time, Binay was being investigated by the Senate blue ribbon committee for the allegedly anomalous construction of a city hall parking building when he was Makati mayor. The probe expanded to alleged kickbacks from various projects in Makati and the use of dummies like Tiu to hide unexplained wealth.
Tiu had repeatedly denied allegations he was a Binay dummy and refuted an erroneous bank report that was submitted to the Anti-Money Laundering Council.
When its bank accounts were frozen, Greenergy immediately applied for a voluntary trading suspension of its shares listed on the Exchange “in order to prevent any unusual volatility in the trading of its securities that may cause investor panic …”
During the trading suspension, the PSE said the company also did not comply with the structured reportorial requirements under its disclosure rules.
From 2015 to 2016, Greenergy and Tiu sought to nullify the freeze order on their bank accounts.
Last July, Greenergy obtained a favorable order from a Manila regional trial court, which cleared the funds in its bank accounts from involvement in any unlawful activity. The company and Tiu regained access and control over their bank accounts, thus benefiting business operations.
The PSE granted Greenergy’s request to lift the trading suspension, which will become effective on Nov. 5, noting the facts and circumstances that had triggered the trading suspension were no longer present. At the same time, the PSE noted Greenergy had submitted all its outstanding structured annual and quarterly reports, and had likewise settled all applicable penalties.
Considering that the trading of the company’s shares was suspended since 2015, the 50-percent daily maximum price increase at the PSE was waived on the first day of trading of Greenergy shares.
At its closing price of P1.55 per share on Monday, Greenergy was valued by the stock market at around P666 million.
