MANILA – (UPDATE 2) The Philippine Stock Exchange is looking at tightening the delisting rules to protect small investors as some practices can be disadvantageous to them, its director said Thursday.
There is no premium in the tender offer price in the delisting of Resort World operator Travellers International, PSE director Vivian Yuchengco told ANC.
Tender offer price for the delisting is currently at P5.50 compared to its original initial public offering price (IPO) of P11.28 in 2013, she said.
“That is prompting the stock exchange to review our delisting rules because you know the ones who suffer are the small investors like now there’s about 10 percent left in the Resort World,” Yuchengo told ANC.
“We weren’t aware of the delisting until it was announced and there were a lot of media saying they’ve lost 51 percent, they’ve lost so much money and then all of a sudden they’re delisting. So I really don’t know how to tighten the delisting rules on that but we’re looking at other countries to see how do they handle these type of delisting,” she added.
Francis Lim, former PSE president and current head of the Philippine Shareholders Association said current delisting rules need "enforcement and improvement."
Lim cited a rule in the Singapore Stock Exchange (SGX) where stockholders’ approval is required for voluntary delisting.
He said that under SGX rules, the parties making the tender offer "are not allowed to vote at the stockholders meeting where the voluntary delisting is taken up."
"The PSE may want to look at that model," Lim said in an interview with ANC's Market Edge.
Andrew Tan's casino business earlier disclosed it was delisting from the exchange to avoid "compromising" its strategy to the competition.
-- With reports from Michelle Ong and Cathy Yang, ABS-CBN News