RCI’s treasury shares
ROXAS Holdings Inc. (RHI) is formerly known as Central Azucarera de Don Pedro. It has 2 billion in authorized capital stock, of which 1,547,935,799 common shares are outstanding, according to the company’s financial filing for the first quarter of 2020.
As of Mar. 31, 2020, RHI reported retained earnings of P1.082 billion despite having incurred a P96.153-million net loss during the quarter. The company had P6.599 billion in assets, which it said failed to sell because the Philippine Competition Commission disapproved it.
In an explanatory footnote, RHI said these assets are as follows: land, P3.423 billion; machinery and equipment, P2.469 billion; buildings and improvements, P554.868 million; furniture fixture and other improvements, P75.040 million; transportation , P63.508 million; investment properties, P12.230 million; construction in- progress P1.433 million.
A public ownership report (POR) as of Mar. 31, 2020 listed three principal stockholders as owners of 1,291,864,106 RHI common shares, or 83.457 percent of the outstanding. They are Roxas & Co., 318,341,705 common shares, or 20.566 percent; First Agri Holdings Inc., 467,854,834 or 30.224 percent; and First Pacific Natural Resources Holdings B.V., 505,667,566 or 32.667 percent.
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Roxas & Co. Inc. ( RCI) does not own 318,341,705 RHI common shares because it was only No. 3 among RHI’s top 100 stockholders. Instead of more than 318 million common shares, it held only 99,624,995, or 6.430 percent of the “grand total” of 1,549,336,391 common shares held by 130 stockholders.
Nos. 1 and 2 was PCD Nominee Corp. As record holder for Filipinos, it held 902,894,886 common shares, or 58.276 percent; for foreigners, 523,850,839 or 33.811 percent.
The other stockholders on the Top 100 list were Insular Life Assurance Co. Ltd., 1,198,520 common shares, or 0.077 percent; Jose Manzano Jr., 1,029,007 or 0.066 percent; Gilbert Liu, 1.014 million or 0.069 percent; Emilio Pantoja, 785,078 or 0.051 percent; Armando Medina, 770,640 or 0.050 percent; Leonardo Siguion
Reyna, 608,400 or 0.039 percent; Raul Roco, 486,720 or 0.031 percent; and O. Ledesma & Co., 446,160 or 0.029 percent.
RHI shares peaked at a 30-day high of P1.55 on Apr. 14, 2020, when they opened trading at P1.49; dropped to P1.49; and closed at P1.50. They fell to a 30-day low of P1.28 on May 20, 2020, when the stock opened at its high of P1.29 and closed the day at its low of P1.28.
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On May 19, 2020 RCI sold treasury common shares at P1.65 each. As of the date of its disclosure, the company said the number of treasury shares sold totaled 63,152,346 after its seven-person board approved “the continuous sale” on Sept. 24, 2014 as “a fundraising initiative for working capital and expansion projects.”
“The company is programming this year to meet its business plan commitments by raising funds through the sale of treasury shares. The company started selling its treasury shares on 15 February 2018,” the disclosure said.
As a result of the sale, RCI increased the number of its outstanding common shares to 2,085,321,553 from 2,084,109,432.
A POR as of Mar. 31, 2020 showed that RCI issued 2,911,885,870 common shares, of which 855,076,706 are treasury shares. This resulted in 2,056,809,164 outstanding RCI common shares, of which two principal stockholders collectively own 1,236,226,566 common shares, or 60.104 percent. It listed SPCI Holdings Inc. as holder of 692,779,593 common shares, or 33.682 percent, and Pesan Holdings Inc. as direct owner of 543,446,973 common shares, or 2.642 percent.
The POR listed public stockholders as holders of 794,521,985 common shares, or 38.629 percent, which it rounded off to 38.93 percent.
RCI shares peaked at a 30-day high of P1.70 on Apr. 24, 2020, when they opened trading at P1.45; dropped to P1.44; and closed at P1.63. They fell to a 30-day low of P1.32 on Apr. 8, 2020, when they opened at P1.44, hit a high of P1.45 and closed at P1.45.
Why does First Pacific in Hong Kong own close to 70 percent of RHI? Just asking.