Q&A - What happens if a company becomes
delisted in the Philippine Stock Exchange?
That’s one interesting question I found in Pesos and Sense page which can be one exit strategy of any company to get out of the
Philippine Stock Market. The question came out after some related news about
PCEV.
Here’s the exact investing question from one
facebook user:
Hi...COL informed holders of PCEV shares that PCEV will have a petition for voluntary delisting...what does this mean for a shareholder like me...do I have to sell? what will happen should I decide to sell or not to sell? thanks in advance for your advice
And here’s a short answer given by Sir Aya Laraya
If they delist, you cant trade the shares in the market anymore. That means if you want to sell after delisting, you will personally have to look for a buyer and may capital gains taxes na. Better sell the shares unless you really, really love the company.
There you have it!
So make sure you choose your companies! You definitely
do not want the hassle of taking in charge of your company shares after it becomes
delisted!
Have millions and fun investing! J
PS1: If you’re a beginner investing in the
Philippine Stock Market, download your
investing book here – Investing in the Philippine Stock Market for Beginners!
If not, share it to your beginner friends!
PS2: Below is a short article of The Daily Tribune
showing more details about the delisting move of the company and some requirements
of PSE under such delisting circumstance. Get to know what delisting a company
is all about!
05/01/2012
PLDT Communications and Energy Ventures Inc.
(PCEV), formerly Pilipino Telephone Corp., was granted the delisting of its
shares from the Philippine Stock Exchange (PSE) and will be effective on May
18.
In a disclosure, the PSE Board has granted the
Petition of Voluntary Delisting file by the company during a board meeting last
April 25.
The PSE said the delisting of the shares of the
company from the Official Registry of the Exchange (electronic board and
ticker) will be effective May 18, 2012, Friday, and will be subject to the
payment of the required voluntary delisting fee.
Last March 19, PCEV filed a petition for
voluntary delisting of its common shares to the PSE. It said it has requested
the PSE’s approval of its petition to delist, with May 18, 2012 as the
effectivity date of the delisting of PCEV shares.
The firm disclosed that the proposed voluntary
delisting has been approved by a majority of the directors during PCEV board
meetings on Nov. 2 and Dec. 2, 2011.
And with a requirement under the PSE rules, Smart
Communications Inc., the legal and beneficial owner of 99.51 percent of total
outstanding shares of the company, will make a tender offer for the 58 million
PCEV shares held by other stockholders.
Smart has filed a tender offer statement with the
Securities and Exchange Commission last March 15 and the tender offer was last
March 19.
Danessa O. Rivera
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