MANILA - There was "no fraud" in the acquisition of shares in The Medical City operator Professional Services Inc (PSI), its current board of directors said Friday, following a ruling by the Securities and Exchange Commission that nullified the deal.
The SEC's decision was "arguably confiscatory," for the shares legally acquired to be classified as "unsubscribed" or reverted back to the treasury shares, the Professional Services Inc (PSI), which operates TMC, said in a statement.
"There was no fraud in the acquisition of shares that SEC seeks to nullify, because the SEC itself approved, on 28 April 2018, a mandatory tender offer to the other shareholders, as required by law," it said.
The Court of Appeals and a regional trial court has also recognized the current board of The Medical City, the PSI said.
The Medical City is also not a named party of the decision "thus the findings of the SEC are not enforceable against the PSI or TMC," it said.
Affected shareholders are currently seeking legal assistance against the decision but the Board assured the public that it would continue to manage the business of PSI and The Medical City.
The SEC earlier said it nullified the majority acquisition of shares in The Medical City (TMC) by a group led by Jose "Eckie" Gonzales after finding it to have "employed fraud" and violated regulations.
The regulator nullified the acquisition of shares by Viva Holdings, Viva Healthcare, Fountel and Felicitas Antoinette in Professional Services Inc (PSI).
All share acquisitions made by the group were, later on, declared "null and void with immediate effect," the SEC said.
TMC's Board has been divided between 2 factions since its former CEO Alfredo Bengzon was ousted by the group led by Gonzales, who is his nephew.
Bengzon has been fighting Gonzales’ boardroom coup at the SEC and in court.