Tanduay sues for more time to comply with PSE rule

MANILA, Philippines - Tanduay Holdings Inc. is seeking leeway to comply with the 10 percent minimum public float requirement for listed firms, saying its reorganization into a holding company will require some time and diligence.

In a letter to the Philippine Stock Exchange, Tanduay said its public ownership level would temporarily fall below 10 percent for a few months following the completion of its reorganization.

To comply with the required public ownership level, Tanduay will issue up to three billion shares via a top-up scheme, whereby the selling shareholders will lend some secondary shares for sale and then subscribe to the same number of shares at the same price.

Errant listed firms have until the end of the year to boost their public ownership level. Failure to do shall result in trading suspension.

Tanduay pointed out that the anticipated non-compliance is temporary in nature and would be rectified upon completion of the top-up offering.

“The measures we are taking to ensure compliance with the minimum public ownership necessary by force of law, require time to execute. The sheer magnitude of the transaction involved (investment in five major industries through the acquisition of 10 companies) require diligence and prudence and should not be hastily executed to the prejudice of our stockholders,” Tanduay said.

Tanduay said the exigencies of the transactions have resulted to unavoidable delays in documentation and implementation.