SEC suspends Ever Gotesco’s permit to sell securities

MANILA, Philippines - Shopping mall developer and operator Ever Gotesco Resources & Holdings Inc. has been barred from selling shares due to its failure to conduct a shareholders’ meeting.

In a memorandum, the Philippine Stock Exchange said the Securities and Exchange Commission ordered the suspension of Ever Gotesco’s registration of and permit to sell shares.

“The records on file with SEC show that Ever Gotesco violated for the fourth time the Securities Regulation Code...for its failure to hold its annual stockholders’ meeting in 2012,” PSE said.

As the SEC issued its resolution on May 16, Ever Gotesco’s permit to sell shares is suspended for 60 days from the date of receipt of the SEC order.

The PSE started a trading suspension on Ever Gotesco’s shares on Friday.

Ever Gotesco, which is controlled by the Go family, was incorporated in 1994 focusing on the construction of shopping malls and leasing them out to commercial tenants.

Its malls are primarily leased out to Ever Department Store and Supermarket, cinemas, banks, amusement centers, food shops, specialty stores, boutiques, drug stores, service shops, gym and sporting facilities.

The listed company operates two malls: Ever Gotesco Commonwealth Center and Ever Gotesco Manila Plaza. Subsidiary Gotesco Tyan Ming owns and operates Ever Gotesco Ortigas Complex.

In 2009, Ever Gotesco and subsidiary Gotesco Tyan Ming Development Inc. entered into a compromise agreement with creditor banks of its foreclosed properties pending court cases.

In the first quarter, Ever Gotesco posted a consolidated net income of P32.55 million, more than double the P13.51-million profit in the same period last year.

It benefited from a 16-percent drop in operating expenses to P67.35 million from P80.53 million amid flat revenues at P87.69 million from P87.21 million a year ago.