Quick takes from around the market

1. SSI Group [SSI 2.53 ?2.0%; 48% avgVol] [link] announced that it will create a joint venture with Prada S.p.A to own and operate PRADA stores in the Philippines. The joint venture entity is PRADA Philippines, and it will be owned 60% by Prada S.p.A and 40% by SSI. Prada S.p.A has already subscribed to ?25 million worth of shares in PRADA Philippines and SSI has subscribed to ?16.7 million worth. At completion, SSI will have invested ?152 million and Prada S.p.A approximately ?228 million.
   
   MB Quick Take: The deal will morph the relationship between Prada S.p.A and SSI from “franchisee-franchisor” to joint venture partners, which should give SSI a higher ceiling in terms of potential profits from any PRADA-related activity in the Philippines. This is great news for SSI if you’re a PRADA (and luxury goods) bull.
    
2. Maya [TEL 1260.00 ?-0.5%; 203% avgVol] [link] activated its PSE stock trading platform on December 15. Maya’s initial partner broker is Philstocks, but it will add 2TradeAsia, DragonFi and Seedbox as partner brokers soon.
   
   MB Quick Take: It’s interesting to see Maya come out with its own app-based trading platform after GCash sucked up so much attention bringing the first such platform to market earlier this year. The GCash platform (GStocks) was technically launched to all users in August through a single brokerage partner (AB Capital Securities), but we’ve heard precious little about the launch from any of the stakeholders (PSE / GCash / AB Capital). No update on the number of new accounts that have been generated, or the number of existing accounts that have begun to trade through the platform as a result of the launch. Perhaps there will be some greater transparency now that there’s a competitor in the space. Will Maya’s multi-broker approach push GCash and AB Capital to bring new partners into their relationship?
    
3. PSE [PSE 175.00 unch; 39% avgVol] [link] posted a proposal to amend the voluntary delisting rules. The new rule would prohibit a company from triggering a voluntary delisting if involuntary delisting proceedings are already underway, and it would prohibit a company from delisting within 10 years of an IPO, listing by way of introduction, or backdoor listing. The PSE is also proposing to amend the rules to require a company that is voluntarily delisting to select an independent valuation provider selected by the PSE from a list of three valuation providers that are nominated by the company looking to delist.
   
   MB Quick Take: This is a step in the right direction, but as Nicky Franco of Abacus Securities says, “It’s an incomplete win for the minority.” This is the PSE’s first attempt to fill in the gaps in the rules that caused the exchange so many problems in this Year of the Delisting. While it provides greater certainty on the valuation provider (the initial problem in the MPI case) and takes payment for the provider out of the delisting company’s hands, it still excludes the minority shareholders from the process. True story: nobody cares about the majority shareholders, and they shouldn't, because they had the influence to decide to delist in the first place so their interests are well taken care of. Nobody cares about the exchange, and they shouldn't, because the exchange has the ability to craft rules to prevent what it doesn't want from happening and it's going to get paid. The only vulnerable class here are the minority shareholders, and it’s well within the PSE’s rights to include greater protections for minority shareholders that are real and substantial (like giving the minority shareholders greater say in the nomination of valuation providers) instead of strange and arbitrary, like imposing a 10-year “No Delisting” period. 

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.