PSE fines Alliance Global for disclosure violation

The Philippine Stock Exchange (PSE) has slapped a P250,000 fine on Alliance Global Group Inc. (AGI) for failing to disclose the details of its recent acquisitions.

In a statement issued yesterday, PSE president Francis Lim said AGI failed to disclose necessary details on the acquisition of Golden Arches Development Corp., Golden Arches Realty Corp. and the total outstanding common shares of Y&M Development Corp. immediately upon execution of the memorandum of understanding by its board of directors in Dec. 2, 2004.

The PSE’s Rule on Disclosure for Substantial Acquisitions and Reverse Takeovers requires immediate disclosure when a listed company or its subsidiary has merged or consolidated, or acquires a direct or indirect interest in an unlisted company, person or group, and the consideration for such a transaction is at least 10 percent of the listed firm’s total book value.

Pending the submission of the complete terms and conditions of the acquisition, including the unlisted company’s audited financial statements, the exchange then imposes a trading suspension.

AGI acquired a total of 49 percent of the outstanding common shares of GADC, GARC, and the total outstanding common shares of Y&M Development, all held by McDonald’s Restaurant Operations Inc., the local operator of the fastfood giant.

In a report to the PSE board, the bourse’s listing committee said AGI’s acquisition of shares in the three companies "is a material event that could reasonably be expected to affect investors’ decision in relation to the trading of its securities."

AGI is an investment holding company owned by businessman George Yang. It is the exclusive distributor of Campbell Soup Co.’s products and E&J Gallo Winery Inc. wines in the Philippines. It also handles the international marketing of McKester PikNik International Ltd.’s food products.

Aside from food products, AGI also has interests in property development and glass manufacturing. It is a joint venture partner of the Bases Conversion Development Authority and Megaworld Corp. in the Mckinley Hill mixed-use project in Fort Bonifacio.