MANILA, Philippines - The Philippine Stock Exchange is starting the delisting process for businessman Roberto Ongpin's property company Alphaland Corp.
Alphaland is set to be delisted from the local bourse after it was found to have violated the PSE's listing and disclosure rules. Under the PSE rules, delisting is the maximum penalty imposed on an erring company.
In its notice, the PSE said the company's actions "show a pattern of deliberate, conscious and willful intent to mislead the exchange and the investing public."
"The company’s repeated violations of the disclosure rules and the company’s allegations and representations to the Exchange, taken as a whole, reveal that the company has gravely undermined the primordial principle and objective of a fair, orderly, efficient and transparent market for the trading of securities which the Exchange is duty-bound to uphold at all times," it said.
The PSE pointed out violations committed by Alphaland during the disclosure of the alleged simulated sale of Alphaland shares between Ashmore Investment Management Limited/Alphaland Holdings (Singapore) Pte Ltd and Credit Suisse (Singapore) Ltd, cases involving the company, and its state of financial distress and its representation of its conduct of a Stock Rights Offering which it later admitted as a 'minority offering.
In the case of the "minority offering" transaction, Alphaland had claimed Unicapital Securities was its underwriter, despite no signed agreement with the latter. Unicapital later denied it had participated in the transaction.
"Alphaland has been clearly found to have violated our disclosure rules. Investors are put to risk when companies do not follow our rules and it for this reason that we must at all times enforce these to maintain a fair and orderly market. The PSE would like to ensure the public that we are steadfast in the application of these rules and mindful always of the interest of the investing public," PSE President and CEO Hans B. Sicat said the Securities and.
Sicat said the Securities and Exchange Commission and other government agencies may conduct separate investigations, as well as impose sanctions based on the provisions of the Securities Regulation Code.
Trading of Alphaland shares has been halted and subsequently suspended by PSE since January 20, 2014.
Alphaland will be entitled to a delisting hearing under the PSE rules, provided it files a written request within 15 working days from receipt of the exchange’s decision.
Earlier on Wednesday, Alphaland said San Miguel Corp. president and chief operating officer Ramon S. Ang has quit the board of directors due to "time constraints."