SEC okays block sale of P1.3-B China Trust shares

The Securities and Exchange Commission (SEC) has approved the block sale of China Trust Philippines shares worth over P1.3 billion to China Trust Commercial Bank Corp. of Taiwan.

The China Trust Philippines shares, representing 34 percent of the company’s outstanding shares, have been priced at P19, the same price at which the remaining 66-percent shares will be bought by the buyer through a tender offer.

Graciano Felizmenio Jr. of the SEC’s market regulation department, said that since the transaction has exceeded the 30-percent limit set by Section 19 of the Securities Regulation Code, China Trust Taiwan has agreed to undertake a tender offer to buy the remaining 66-percent shares of the seller.

The Securities Regulation Code requires the buyer to make a tender offer to the other stockholders if the 30-percent limit has been surpassed, Felizmenio added.

For this purpose, China Trust Taiwan has submitted to the commission en banc an affidavit of undertaking a tender offer to meet the condition for the approval of the block sale.

China Trust Philippines made the request for the approval of the block sale last Nov. 29 which involved a total of 63, 526, 127 shares, owned by various shareholders of the company. – Rommel Ynion