Robert Sobrepeña —PHOTO FROM METRO GLOBAL HOLDINGS CORPORATION WEBSITE
Metro Global Holdings Corp. has obtained a P55-million lifeline from an overseas investor, thus avoiding at the last minute its automatic removal from the local bourse for going below the minimum public ownership (MPO) requirement.
The company led by businessman Robert Sobrepeña on Monday said its parent firm, Fil-Estate Management Inc. (Femi), had transferred 55 million Metro Global shares to Hong Kong-based Smart Share Investments Ltd. for P1 each.
These shares represent a 2-percent stake in Metro Global, thereby increasing its public ownership to 10.67 percent.
Metro Global, which had first started in mining, issued in February this year an additional 750 million shares to Femi, its controlling shareholder, to increase its authorized capital stock. This caused its public ownership to drop to 8.67 percent, which is below the 10-percent minimum level.
The Philippine Stock Exchange (PSE) then warned that Metro Global could be automatically delisted by Aug. 5, or six months after it had gone below the required minimum public float. A company that is involuntarily delisted cannot apply for relisting within five years from its removal from the bourse.
Directors and executive officers are likewise disqualified from becoming part of any company applying for listing within the same period. Trading of Metro Global’s shares has been suspended since 2007 after it had asked the PSE for a voluntary halt to “realign its business and explore new strategic directions.”
For its part, the PSE said on Monday, “Given the company’s compliance with the requirements under the Amended MPO Rule and the relevant guidelines, [Metro Global] shares will no longer be automatically delisted on Aug. 5.”
The deed of assignment had been signed on July 17, while the Bureau of Internal Revenue approved the transfer of shares to Smart Share on July 26, according to Metro Global’s stock exchange filing. So far, the local bourse has seen two delistings this year—Premium Leisure Corp. and Cebu Holdings Inc.—against three initial public offerings: OceanaGold Philippines Inc., Citicore Renewable Energy Corp. and NexGen Energy Corp. —Meg J. Adonis INQ