RRHI trading suspended as PSE exit looms

MANILA, Philippines — Trading of Robinsons Retail Holdings Inc. (RRHI) shares was suspended yesterday ahead of the company’s looming exit from the Philippine Stock Exchange (PSE).

RRHI said that JE Holdings Inc.’s acquisition of common shares tendered pursuant to the tender offer conducted from May 25 to July 6,  representing 21.54 percent of the company’s outstanding capital stock has been effected through a block sale within the facilities of the PSE.

The acquisition resulted in RRHI’s public float decreasing to 0.31 percent of the company’s issued and outstanding capital stock.

The PSE implemented a trading suspension on RRHI shares after the execution of the crossing of shares yesterday, as the company’s public float breached the minimum public ownership requirement of the exchange.

“Given the intention to voluntarily delist from the exchange, the company has no plans to restore its required public ownership percentage,” RRHI said in a stock exchange filing.

RRHI is in the process is of obtaining the approval of the PSE for the voluntary delisting of the company’s common shares.

The company has earlier requested that the voluntary delisting of the company from the PSE be effected by July 28.

The tender offer priced at P48.30 per share was undertaken to voluntarily delist RRHI from the exchange.

The voluntary delisting from the PSE was made because market valuations no longer reflect the company’s intrinsic value.

RRHI listed its shares at the PSE on Nov. 11, 2013, raising P28.12 billion from the sale of primary and over-allotment shares during its initial public offering.

As of end-March, RRHI has a total of 2,782 stores consisting of 805 food stores, 1,187 drugstores, 51 department stores, 234 DIY stores and 505 specialty stores. It also has over 2,100 franchised stores of TGP.