PSE president Cayetano Paderanga said earlier it would seek SEC clearance in allowing the sale of PSE new shares at P119.50 per share without securing prior approval of the bourse’s shareholders.
"We are inclined to approve their request because we feel that the indicative price of P119.50 per share is reasonable. Can you really say it is a discounted price when nobody is buying? Shares of PSE are hardly traded because the price is not realistic. It is too high," SEC chairman Lilia R. Bautista said.
Shares of PSE were last traded at P195 per share on Jan. 27.
Bautista added that the SEC has the final say on how PSE shares should be traded. "We can issue a waiver because the rules on how PSE shares will be traded is up to the SEC because this is something not covered by their SRO status simply because they can not regulate themselves," Bautista said.
Arroyo said earlier the board would not seek shareholder approval because the broker-shareholders are mandated by the SEC to sell their shares and that P119.50 is a reasonable price that will entice more investors for the proposed private placement of shares.
However, a group of stockbrokers led by Robert Coyiuto, has asked the PSE to hold off the implementation of the planned private placement of PSE shares until prior approval of the bourse’s shareholders is secured.
In a letter to the PSE, 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.
Apart from Coyiuto, the other brokers who have opposed the private placement are former PSE chair Trina Kalaw, Eddie Gobing, Ismael Cruz, and Fiomeno 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 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, the group said.