PSE president Cayetano Paderanga said the recommendation of the exchange’s general counsel would be taken up by the board in a meeting set tomorrow, or a day before the bourse’s annual stockholders meeting.
Shareholder-brokers Ismael Cruz, Filomeno Francisco and Edgardo Guevara have demanded that the board reconsider the sale of its shares through private placement and not recognize the buyers of these shares as voting shareholders. About 80 other brokers have signed a manifesto outlining their objection to the recent P733- million stock sale.
They also want the bourse to suspend the payment of a P16 cash dividend to PSE shareholders as this would be tantamount to giving the buyers an additional P16 discount on the purchase price or a rebate.
The shares were sold to the Government Service and Insurance System (GSIS), PLDT Beneficial Trust Fund, San Miguel Retirement Fund, Kim Eng Investment Ltd., KE Strategic Pte. Ltd., A. Soriano Corp. and Equinox Partners. The PSE shareholder-brokers said they are even prepared to take legal action if the PSE does not reconsider the sale of shares to institutional investors.
They alleged that the deal was consummated in undue haste and lack of transparency and was not even duly approved by the PSE board.
The group also alleged that the private placements violated multiple rules of the Corporation Code, the Securities Regulation Code, and the PSE’s own rules on additional listing of shares.
The group claimed that the offer price of P119.50 per share was extremely low and grossly disadvantageous to existing PSE shareholders. Compared to quoted prices at the time of placement of between P195 to P200 per share, the subject price of P119.50 per share represented only a small premium over its book value of P105 per share and did not give value to the PSE franchise and its property assets.