RCI’s treasury shares
ROXAS Holdings Inc. (RHI) is formerly Central Azucarera de Don Pedro. It has 2 billion 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, which is the end of the first quarter, RHI reported retained earnings of P1.082 billion despite having incurred P96.153 million net loss during the period. The company had P6.599 billion assets, which it said it failed to sell because of the disapproval by the Philippine Competition Commission.
As RHI related in an explanatory footnote, the assets it held for sale as of Mar. 31, 2020 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; and 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 1,547,935,799 outstanding RHI common shares. They are Roxas & Co. Inc, (RCI), 318,341,705 common shares, or 20.566 percent; First Agri Holdings Inc., 467,854,834 common shares, or 30.224 percent; and First Pacific Natural Resources Holdings B.V., 505,667,566 common shares, or 32.667 percent.
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RCI does not own 318,341,705 RHI common shares because it landed only at number three among RHI’s top 100 stockholders. Instead of more than 318 million common shares, it held only 99,624,995 common shares, or 6.430 percent of 1,549,336,391 “grand total” common shares that were held by 130 stockholders.
At number one and two was PCD Nominee Corp. as record holder for Filipinos of 902,894,886 common shares, or 58.276 percent, and for foreigners 523,850,839 common shares, or 33.811 percent.
The other stockholders as of Mar. 31, 2020, according to the top 100 list, were Insular Life Assurance Co. ltd., 1,198,520 RHI common shares, or 0.077 percent; Jose A. Manzano Jr., 1,029,007 common shares, or 0.066 percent; Gilbert Liu, 1.014 million common shares, or 0.069 percent; Emilio Pantoja, 785,078 common shares, or 0.051 percent; Armando M Medina, 770,640 common shares, or 0.050 percent; Leonardo T. Siguion Reyna, 608,400 common shares, or 0.039 percent; Raul S. Roco, 486,720 common shares, or 0.031 percent; and O. Ledesma & Co., 446,160 common shares, or 0.029 percent.
Roxas Holdings peaked at a 30- day high of P1.55 on April 14, 2020 when it opened trading at P1.49, dropped to P1.49 and closed the session at P1.50. It fell to a 30-day low of PP1.28 on May 20, 2020 when the stock opened at its high of P1.29 and closed the day’s session at its low of P1.28.
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RCI sold 1,212,121 treasury shares on May 19, 2020 at P1.65 each. As of the date of the disclosure, the company said the number of treasury shares it had sold totaled 63,152,346 shares after its sevenperson board approved “the continuous sale” on Sept. 24, 2014 as “a fund-raising 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,” according to the filing.
As a result of the sale, RCI increased its outstanding to 2,085,321,553 common shares from 2,084,109,432 outstanding common shares.
A public ownership report (POR) as of Mar. 31, 2020 showed RCI had issued 2,911,885,870 common shares of which 855,076,706 treasury shares. This resulted in 2,056,809,164 outstanding RCI common shares of which two principal stockholders combined for ownership of 1,236,226,566 RCI 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 the public stockholders as holders of 794,521,985 RCI common shares, or 38.629 percent, which it rounded to 38.93 percent.
RCI peaked at a 30-day high of P1.70 on April 24, 2020 when it opened trading at P1.45, dropped to P1.44 and closed the session at P1.63. The stock fell to a 30-day low of P1.32 on April 8, 2020 when it 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 in Roxas Holdings? Just asking.