Minority shareholders nix Alliance Select stock rights

MANILA, Philippines - Minority shareholders of publicly listed Alliance Select Foods International Inc. have filed a petition seeking the issuance of a restraining order against the tuna canner’s planned stock rights offering.

In a 34-page petition with the Pasig City regional trial court, the minority group claimed the company’s directors and officers are violating basic stockholder rights by requiring shareholders to subscribe to a P1 billion capital raising exercise.

Albert Hong Hin Kay and lone minority director Hedy Yap Chua filed the complaint against Alliance chairman Jonathan Dee, vice chairman George Sycip, president and CEO Raymond See, and other board members of the tuna canning firm.

 In an earlier disclosure to the Philippine Stock Exchange, Alliance Select said it postponed its annual general meeting scheduled on June 15 until the company has completed its stock rights issue which is slated to run from Aug. 17 to 26.

  Minority shareholders claimed the tuna company has been struggling financially in the last two years.

 In 2014, Alliance Select incurred an all time high net loss of $17 million, up from only $2.92 million the previous year.

  At present, the company has a total of $27.85 million worth of  short-term loans from local banks, foreign banks, and investment banks that are set to mature this year.

 Long-term loans, on the other hand, sum up to $4.64 million with years of maturity ranging from 2016 to 2024.

Based on Alliance Select’s by-Laws, its annual stockholder meetings are to be held on the 15th of every year at the principal office, unless it is declared a holiday, then on the following day.

Alliance Select intends to use proceeds from the stock rights offering to fund  capital expenditures and debt repayment.