Meralco seeks lifting of suspension of shares at PSE

The Manila Electric Co. (Meralco) reiterated yesterday its request to lift the suspension of its shares at the Philippine Stock Ecchange (PSE).

“We do not see the justification for or fairness in the trading suspension of all 1.1 billion Meralco shares due to the complaint of Land Bank against Lubrica over only 42 million shares or otherwise stated, on account of one stockholder against 58,926 other stockholders allegedly to protect the interest of the investing public and preserve the integrity, stability and sanctity of stockmarket transactions,” Meralco said.

It argued that the disputed shares consist of only 42 million common shares out of 1.1 billion common shares issued by the company as of Nov. 30, 2008.

The company said it is unfair that the local bourse has to suspend trading in the shares in favor of only one stockholder against 58,926 other existing Meralco stockholders.

The PSE imposed an indefinite trading suspension on Meralco’s stocks starting Dec. 17, 2008 due to a disputed stock certificate transfer.

Meralco pointed out that “the trading suspension has caused grave, irreparable and material damages and losses to Meralco, its innocent stockholders and the investing public.”

The power utility reiterated that the issuance of new stock certificates in the name of Josefina S. Lubrica was pursuant to the demand to comply dated Nov. 3, 2008 covering the certificate of sheriff’s sale dated Oct. 24, 2005 issued by the Office of the Regional Adjudicator, Region 4, Department of Agrarian Reform and Adjudication Board (DARAB).

Meralco said the order directed Meralco’s corporate secretary to immediately issue the corresponding certificates in the name of Lubrica.

It would be noted that Landbank questioned the decision of Meralco to cancel its 42 million stock certificates and put it under the name of Lubrica.

According to Landbank officials, Meralco’s move may cause “complications” especially with the sale of the shares (equivalent to about four percent of Meralco’s total shareholdings) to an investment group called Global 5000.

It would be recalled that Landbank’s shares in Meralco is part of the 10-percent share owned by government financial institutions that Global 5000 is trying to buy for P9.9 billion.