SEC denies MPO deadline extension

THE Securities and Exchange Commission ( SEC) denied requests of several companies like San Miguel Brewery Inc. ( SMB), Maybank ATR Kim Eng Financial Corp. and Filinvest Development Corp. to extend the deadline for the compliance of minimum public ownership ( MPO) rule.

On Monday, the three companies disclosed to the Philippines Stock Exchange ( PSE) that the SEC has denied their request for extension for them to be able to comply with the MPO rule, which requires them to meet the 10percent public float in their companies.

“The company received a letter today [ Monday] from the PSE informing them that the SEC denied all requests for extension of the grace period to comply with the MPO requirement of the PSE,” SMB said in its disclosure.

SMB further added that as a result of the denial, the PSE shall impose a trading suspension on the shares of the company effective January 1, 2013 should the company be still non- compliant with the MPO by December 31, 2012.

This suspension of trading of shares means that trading on the company’s shares will be subject to the capital gains tax of 5 percent, or 10 percent and documentary stamp tax beginning January 1, 2013 instead of the stock transaction tax of a half of 1 percent pursuant to revenue regulations.

“The trading suspension shall be imposed until June 30,2013. Should the company remain to be noncompliant with the MPO after June 30, 2013, the company shall be effectively delisted by July 1,2013,” SMB added.

In separate disclosures, Maybank and Filinvest both said that SEC also denied their requests.

In the previous day, PSE already announced that in June next year, it will start delisting listed firms that will not comply to the 10- percent MPO rule, while on January 1, 2013, the exchange will start suspending those that fail to meet the deadline given to them, which is a grace period of up to December 31.

A PSE memorandum on the matter states that listed companies that are non- compliant with the MPO requirement have already been given a grace period of up to December 31, 2012 to meet the requirements.

PSE requires publicly listed firms to have a minimum of 10 percent of their issued and outstanding shares, exclusive of any treasury shares, held by the public.

The bourse recently listed down 25 listed companies that remain noncompliant with the MPO rule, which includes Alphaland Corp., PAL Holdings Inc., San Miguel Properties Inc. and Eton Properties Philippines Inc., among others.