PSE to delist Alphaland for violations of disclosure rules

MANILA, Philippines – The Philippine Stock Exchange (PSE) initiated delisting procedures against property firm Alphaland Corporation for repeated violations of disclosure rules.

In a notice on Wednesday, March 12, PSE said Alphaland, led by Roberto V. Ongpin, repeatedly failed to submit full, fair, accurate and timely disclosures of material information – which is grounds for delisting.

“We deem our disclosure rules sacred in as much as we deem investor protection of primordial importance in the conduct of our duties as a regulator over listed companies. We take this role seriously and we expect only the strictest compliance to our rules by our listed companies,” PSE president and CEO Hans Sicat said.

“Alphaland has been clearly found to have violated our disclosure rules. Investors are put to risk when companies do not follow our rules and it for this reason that we must at all times enforce these to maintain a fair and orderly market,” Sicat added.

PSE said Alphaland’s violations occurred in the course of its disclosures of the alleged simulated sale of Alphaland shares between Ashmore Group and Credit Suisse (Singapore) Ltd, cases involving the company, its state of financial distress and its representation of its conduct of a stock rights offering, which it later admitted as a “minority offering.” (READ: Ongpin vs Ashmore: The real deal)

PSE said the company’s actions show “deliberate, conscious and willful intent to mislead the exchange and the investing public.”

“The PSE would like to ensure the public that we are steadfast in the application of these rules and mindful always of the interest of the investing public,” Sicat said.

PSE’s announcement came as Alphaland and another Ongpin-led company, Philweb Corporation, reported that San Miguel Corporation president Ramon Ang resigned from their boards. Ang is a known ally of Ongpin. San Miguel’s retirement fund is a principal shareholder of PSE.

Ongpin, the trade minister during the Marcos regime, is one of the country’s most controversial businessmen, having been involved in a string of legal and corporate cases.

He was accused of signing behest loan deals with state-run Development Bank of the Philippines for the purchase of shares in Philex Mining Corporation in 2009, and engaging in insider trading to profit from the sale of said shares. 

He had a falling out with Ashmore that led to his move to take over Alphaland through a capital call. Aside from this, he is also emroiled in a dispute with the Wenceslao Group over the Alphaland Marina Club.

Alphaland is entitled to a delisting hearing under the exchange’s rules, provided a written request is filed within 15 working days from receipt of the exchange’s decision, according to PSE.

Trading of Alphaland shares has been suspended since January 20, when the company accused Ashmore of simulating a share sale to make the company compliant with the public float rule and keep it listed on the exchange. – Rappler.com