New era for the PSE

Last January, this corner wrote about a US-listed, Fiji-based mining company keen on having its shares listed in the Philippines. The company, Siga Resources, was trying to pull all stops to get listed locally and it was an event many were eagerly looking forward to as it would signal an impending change and improvement in investor sentiment towards the local equities market.

Well, the people behind Siga Resources evidently read The star right back then as the local exchange’s index has since increased by some 860 points or just shy of 44 percent. Though their biggest regret was not being able to hurdle the Philippine Stock Exchange’s regulatory guidelines soon enough to have experienced the local stock market’s surge.

Hidden Agenda bumped into Siga Resources’ representative Anand Nagin yesterday who enthusiastically informed us that the company has attended to the required documentation and will be finally submitting its formal application for listing to the PSE. He was quick to add however that Siga’s enthusiasm is tempered by the fact while it would like to move forward as expeditiously as possible, they hope the PSE will be in a position to move forward quickly as well.

Nagin admitted that Siga held a series of discussions with other exchanges but in his own words, he has always felt that the PSE was a good marriage for them. Many agree with Nagin that given lingering perception of today’s uncertain economic times, innovative thinking is required on all sides. And the fact that mining and energy stocks have been leading the local market surge is this year has provided more serious incentives as well.

The intent to dual list shows that Siga is committed to moving forward with its exploration activities in Fiji and will look for projects to participate, once dual listed in the Philippines.

It will also show that the PSE is open for business and that the world is welcome. And Siga Resources gives credit to both PSE president Francis Lim and COO Roy Rafols for what they describe as “their progressive vision in this regard”.

The Philippines is apparently viewed by foreign investors as having more mature markets – with immense potential worth tapping. 

The implementation of measures to attract more foreign companies into listing with the PSE can also be another avenue to promote the local bourse and sustain its current momentum.

Local traders and analysts can be expected to welcome the concept of dual listing, especially when you consider the fact that dual-listed firms will have to be far more transparent with regard to corporate movements — due primarily to the fact that there will be two bourses looking into the company’s performance, claims and disclosures.

Misguided elements

It was recently reported that using deceit and false pretense, several personnel of airport concessionaire Transnational Products, Inc. (TNP) have destroyed the structures put up by Duty Free Philippines and the Manila International Airport Authority (MIAA) at TNP’s padlocked and boarded-up snack bar at the transit lounge of the departure area of NAIA 1.

As a result, the MIAA filed a case of malicious mischief against the TNP personnel, with other cases being mulled against the concessionaire and its personnel for destruction of government property, breach of airport security and for willful defiance of lawful authorities.

Apparently, TNP’s owners and operators thought that an Aug. 4, 2009 cease and desist order of Branch 18 of the Manila Regional Trial Court (RTC) for MIAA not to padlock TNP’s snack bar was seen by TNP as a license to take matters in its own hand and just remove the store barriers without MIAA’s supervision and approval.

Reports revealed that TNP personnel “borrowed” the key to the padlock installed at the boarded up TNP snack bar under the pretense of doing an inventory before proceeding to remove the barriers put up by DFP and the MIAA.

Pending the result of an investigation into TNP’s action, the MIAA canceled all the passes of TNP’s personnel, if only to prevent the occurrence of similar unlawful actions.

TNP has been operating the snack bar at the transit lounge, along with another snack bar at the West Satellite of the Departure Area and an Executive Lounge at the Administration Office, since 1982.  However, TNP’s lease contract for the three areas had expired on Oct. 30, 2003 and that the same had been running on a month-to-month basis since then.

MIAA issued TNP a termination of lease last June 11, effective June 30, 2009.  The lease termination applied only to the lounge area snack bar, with TNP’s other snack and operation of the Executive Lounge continuing on a month-to-month basis.

The MIAA says it needed the snack bar area held by TNP at the lounge so it can free up more space for the final security check, specifically the area held by DFP which would turn over to MIAA its store fronting the final security check area.

Upon receipt of the notice of lease termination on June 16, 2008, TNP sought a preliminary injunction and a TRO against the MIAA, claiming that it has account receivables amounting to P6.4 million, advance payments to MIAA up to Dec. 2009 and that it was being singled out by the MIAA.

MIAA on the other hand claims it has nothing to do with whatever account receivables TNP may have, and that it can easily refund whatever advance payments it received in lieu of cash bonds.  It is also being alleged that TNP was not being singled out by MIAA since the latter has also terminated the lease contracts of two other concessionaires, namely that of Electro Sound and PreClaro’s Souvenirs.

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