PSE to review stock valuation provider rules

The Philippine Stock Exchange (PSE) is planning to review its rules on the accreditation of stock valuation providers in the wake of numerous complaints regarding the tender offer price of Melco Resorts and Entertainment (Philippines) Corporation (MRP).

PSE Chief Operating Officer Roel Refran noted that the bourse has been swamped with complaints regarding the price offered by MRP which investors believe is too low given the company’s prospects.

“There were so many letters sent to us in relation to Melco in this four-week episode. Some are from retail investors, others are from brokers,” said Refran noting though that MRP is insisting that they offer price already carries a 14 percent premium.

Stock analysts have come up with higher valuations, based on their computations, with estimates ranging from 111.00 to over 112.00 per share.

“For now, we have the rules on accredited valuation providers. That is what we will be tweaking. We’ll come out with the formal comment process for that,” said Refran.

He noted that, “on the one hand, who engages the valuation provider? Of course it’s the company, the board or directors, they approve (the choice of valuation provider).”

“We are now reviewing. We are benchmarking because there is no standard. Whether you will have a price range when you delist,” Refran said.

In response to numerous complaints against its tender offer price, MRP had earlier put its foot down and insisted that the price is fair and that it will pursue the tender offer even if it is not supported by some shareholders.