China Bank’s early
to 198,872,913 CHIB common shares.
According to the same GIS, among China Bank’s Filipino stockholders were, and still are, SM Investments Corp. ( SMIC) with 344,493,881 CHIB common shares, or 13.858 percent; Sysmart Corp. with 296,604,070 CHIB common shares, or 11.931 percent; and Shoemart Inc. with 86,885,206 CHIB common shares, or 3.495 percent.
China Bank’s three significant stockholders with combined holdings of 727,983,157 CHIB common shares, or 29.285 percent, belong to the SM group, which is owned by businessman Henry Sy Sr. and his family.
Ownership profile
As of Oct. 16, 2017, the public ownership report (POR) of China Bank showed SMIC, Sysmart and Shoemart owned more CHIB common shares than what were listed in the bank’s GIS.
The bank’s GIS did not lie in showed the three principal stockholders with less holding because some of the CHIB common shares they held were lodged with the PCD Nominee Corp., which acts as a record stockholder in behalf of the Sy family.
China Bank’s POR listed the three SM- owned companies as holders of 920,820,746 CHIB common shares. These were – and still are – SMIC, 427,755,241 CHIB common shares, or 17.207 percent; Shoemart, 107,884,651 CHIB common shares, or 4.34 percent; and Sysmart, 385,180,854 CHIB common shares, or 15.495 percent.
Subtracting 727,983,157 CHIB common shares as shown in the GIS from the POR’s 920,820,746 CHIB common shares, equals a difference of 192,837,589 CHIB common shares, or 7.757 percent.
By the way, this kind of ownership reporting is not a monopoly of China Bank. Other listed companies do likewise but not with the intention of hiding the missing numbers.
8% stock dividend
In a letter dated Sept. 29, 2017, China Bank informed the PSE of having received the SEC approval of the increase in its authorized capital to P33 billion from P25 billion. In terms of common shares, the expanded authorized capital is equivalent to 3.3 billion CHIB common shares based on a par value of P10 per share.
In an amended filing dated Oct. 27, 2017, China Bank said it needed to increase its authorized capital stock to accommodate the additional 198,872,913 CHIB common shares.
- ing that 198,872,913 CHIB com- mon shares represent the “total number of shares to be issued inclusive of fractional shares” arising from the declaration of an 8 percent stock dividend.
To get China Bank’s new outstanding capital stock, add 198,872,913 CHIB common shares and the present outstanding capital stock of 2,684,770,707 CHIB common shares. The addition would result in 2,883,643,620 CHIB outstanding common shares.
Additional computation showed 8 percent of 2,684,770,707 outstanding CHIB common shares were equivalent to 214,781,656.56, while 198,872,913 additional CHIB shares to be issued were equivalent to 7.407 percent of 2,684,770,707 CHIB outstanding common shares.
By the way, will other listed companies follow China Bank in declaring a stock dividend? Some of them even portray the public as their majority stockholders, but who have no board seat? Just asking.