Synergy Grid to comply with PSE minimum ownership requirement

MANILA, Philippines - Synergy Grid & Development Phils. Inc., which controls the country’s transmission highway, will comply with the Philippine Stock Exchange’s minimum public ownership requirement of at least 10 percent, according to a company official.                           

Henry Sy Jr, chairman and president of Synergy Grid, said the company is taking steps to meet the end-December 2012 deadline imposed by the PSE for continued listing on the stock exchange.     

“We will announce as soon as everything has been firmed up. We will definitely not resort to delisting. That’s all I can say for now,” Sy said.

Synergy Grid formerly UEM, is one of the 27 companies that fall short of the required minimum public float. Its public float is 7.44 percent.

Sy, the eldest son of the country’s richest man, acquired a 45.5 percent stake in Synergy Grid in 2010 as part of a plan to venture into the infrastructure sector. He also sits as chief executive officer of the National Grid Corp. of the Philippines.

Upon his entry, Sy amended Synergy Grid’s primary purpose from a company originally engaged in general construction and other allied businesses to one engaged in power, energy, utilities and infrastructure.

Under its franchise, National Grid is mandated to offer at least 20 percent of its shares to the public within 10 years after it started operations.

National Grid took over the operations of National Transmission Corp. in January 2009 after submitting the winning bid of $3.95 billion for the right to manage and operate the country’s transmission network.        

The law also states the listing in the PSE of any company which directly or indirectly owns least 30 percent of the outstanding shares of the National Grid will be considered a compliance of the listing requirement.    

Failure by companies to raise their public ownership would result in the suspension of trading in their shares for up to six months beginning the first trading day next year.

Once trading is suspended, any transaction on stock trades will no longer enjoy the preferential tax rate of 0.5 percent. The Bureau of Internal Revenue will instead slap the five to 10-percent capital gains tax on stock trades.