National Book Store drops backdoor listing

NATIONAL BOOK Store, Inc. (NBS) will no longer pursue a backdoor listing, leaving the shares of its target company tumbling at the equities market.

With NBS’s move, supposed listing vehicle Vulcan Industrial & Mining Corp. told the stock exchange the bookstore’s stake in the company would be unchanged.

“Despite NBS’s decision to no longer pursue the backdoor listing, its investment and subscription to shares in the Company shall remain unchanged. There will likewise be neither change in the composition of the Board of Directors nor in public float,” Vulcan said on Wednesday.

NBS is Vulcan’s top shareholder with holdings amounting to 850 million shares or around 58.6% of the total capital.

On Tuesday, Vulcan said NBS had informed the company that it was dropping the backdoor listing of its retail assets.

“After careful deliberation and many years of study, the board of directors of National Book Store group has decided to no longer pursue a backdoor listing of its retail assets to enable it to focus on various initiatives integral to the future growth of the business,” NBS Managing Director Maureen Alexandra S. Ramos- Padilla said in a Nov. 14 letter to Vulcan Vice- Chairman Christopher M. Gotanco.

Vulcan requested a onehour trading halt to enable investors to digest the information.

Shares in Vulcan fell by 16.67% to close Wednesday’s trading at P0.75 each.

“As previously disclosed, Vulcan will revisit its strategy and continue to explore various ways to deliver value to our shareholders,” said Vulcan, a company is involved in finding, developing, and producing oil and gas reserves and other mineral properties.

“While there is no other agreement planned at this time, the Company assures the Exchange that it will make timely and proper disclosures should one be had with NBS or any other party in the future,” it added.

Vulcan previously said that the delay in the backdoor listing was because of prevailing market conditions as well as the audit being done by NBS.

In its 2016 annual report, Vulcan said the backdoor listing had been postponed “until further notice.” As of last year, the company had no commercial operations since it is only in the stage of exploration.

The company finished the third quarter with zero revenue while incurring losses of P1.46 million, smaller than the P1.67 million in the same period last year. Losses in the third quarter amounted to P417,491, up from P371,727 a year ago.