The Philippine Stock Exchange said since the complete terms and conditions of the transaction have not been disclosed by RCC, it (PSE) "cannot make a definitive determination of the applicability of the Rule on Additional Listing of Shares."
Under the said rule, the exchange prohibits the listing of shares subscribed through private placement, debt-to-equity conversion, share-for-share or property-for-share swap, or similar transactions, unless a rights or public offering for the said shares is first undertaken, anticipating the likelihood of significant interest from the existing shareholders.
Based on its acquisition plan, which was hatched way back in November 2001, RCC will assume Seacem’s majority stake in FR Cement and all its interest in LRIC in exchange for a total of some 1.55 billion fully paid common shares of RCC. The transfer will make Seacem a significant stakeholder in RCC with a resulting 26.8 percent of its outstanding capital.
In turn, RCC’s absorption of the two companies will fortify its position as the country’s second largest cement group with a total rated capacity of nearly seven million metric tons clinker output annually. RCC has interests in Fortune Cement Corp., Premier Cement Corp., Iligan Cement Corp. and Mindanao Portland Cement Corp. – Conrado Diaz Jr.