Alliance Select defers stock rights offering

MANILA, Philippines - Alliance Select Foods International Inc. has deferred its stock rights offering by a month after failing to get the nod of the Securities and Exchange Commission (SEC) for an increase in its authorized capital stock on time.

In a letter to the Philippine Stock Exchange (PSE), Alliance Select president and CEO Raymond See said it does not expect to get the approval of the SEC by Oct. 20 prompting it to move the fund raising activity to Nov. 26.

“Unfortunately, it is possible that the company will not receive the SEC approval of the said application in time to meet the deadline for submission of requirements for listing,” See said.

On July 23, PSE issued a notice of approval granting the company’s application to list up to one million common shares with a par value of P1 per share to cover its SRO to all stockholders of record as of Aug. 7.

In the said notice of approval, the indicated tentative listing date of the shares is on Oct. 20.

On Sept. 2, the SEC received its application for the increase of its authorized capital stock to three billion common shares with a par value P1 per share.

But See said the SEC has not given its approval.

On the other hand, See said if the company gets the approval of the SEC to increase its authorized capital stock before Nov. 26, it would proceed with the SRO at an earlier date.

“In the event that the company receives the approval of the application for the increase in authorized capital stock before the said date, the company shall reschedule the listing to an earlier date and will advise the Exchange as soon as possible,” See said.

The SRO has been the subject of a legal battle between principal and minority shareholders of the company.

Minority shareholders of the publicly listed tuna canner claimed the company’s directors and officers are violating basic stockholder rights by requiring shareholders to subscribe to the P1-billion capital raising.