Coyiuto group seeks deferment of PSE’s private placement

A group of stockbrokers led by Robert Coyiuto Jr., has asked the Philippine Stock Exchange to hold off the implementation of the planned private placement of PSE shares until prior approval of the bourse’s shareholders has been secured.

In a letter to PSE president Cayetano Paderanga and chairperson Alicia Arroyo, the group said a significant number of PSE broker-shareholders are opposed to the proposal to sell PSE shares through a private placement at P119.50 per share.

"They believe that compared to the market price the indicative price represents a huge discount and is detrimental to the interest of the PSE shareholders," the group said. PSE shares were last traded at P195 per share on Jan. 27.

The PSE board, however, believes that P119.50 is a reasonable price that will entice more investors for the proposed private placement of shares.

Apart from Coyiuto, the other members of the group are former PSE chairperson Trina Kalaw, Eddie Gobing, Ismael Cruz, and Filomeno Francisco.

"Many PSE shareholders are of the view that the board should have submitted the proposed private placement to the approval of PSE stockholders. As a preliminary step, the PSE president should have consulted them in a caucus," the group said.

The group cited the PSE’s revised rule on additional listing of shares which provides that a transaction such as a private placement conducted by a listed company is subject to the approval of the stockholders of the company. "This rule was duly approved by the PSE board and the Securities and Exchange Commission and took effect on Sept. 12, 2003," the group said.

The Coyiuto group also sought transparency in the actions taken by the PSE board. "None of the more vital information – such as the intended amount of new shares to be offered and the name of the prospective investors, whether individual or institution – is disclosed. Isn’t the PSE supposed to be transparent in the important action it takes, not because it is a publicly-listed company but also because it is required under its Code of Corporate Governance?," the group said.

Paderanga said the exchange might ask SEC clearance in allowing it to sell shares at P119.50 per share without first obtaining the approval of its shareholders.