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MANILA, Philippines – The country’s largest business group, San Miguel Corp (SMC), may voluntarily delist 3 of its business units by the end-2012 as the local exchange tightens its rules, said a top executive.
“If we can’t comply with the PSE (Philippine Stock Exchange) rules, then we will voluntarily delist by the end of this year,” SMC President Ramon Ang said at the sidelines of a business event on August 28.
Ang was referring to the group’s brewery, real estate and food units, which have shares held by the public below the 10% cap the PSE requires from all listed firms.
“We will still try to sell shares but if the economic situation does not improve then we can’t do anything but to delist,” he added.
The PSE has threatened to suspend trading for companies who fail to meet the requirement by the end of 2012.
Suspended firms will then have another 6 months to meet the rules or face the prospect of being delisted, which means waiting a mandatory 5 years to apply for relisting.
San Miguel has 3 units that don’t meet the minimum public float requirement:
- San Miguel Pure Foods Co – 0.1%
- San Miguel Brewery Inc – 0.6%
- San Miguel Properties Inc – 0.1%
At least 26 other firms also do not meet the 10% public float requirement. The penalty could be tough on those companies who planned on selling shares to raise money for business expansion and other expenses. – Rappler.com
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