SEC lifts suspension of Dominion Holdings’ registration

MANILA, Philippines —  The Securities and Exchange Commission (SEC) has lifted the suspension of Dominion Holdings Inc. (DHI)’s registration statement, which allowed the Sy-led investment holding firm to be registered as a listed company.

In a disclosure to the local bourse, DHI (formerly BDO Leasing and Finance Inc.) said it has received an order from the SEC on July 1, lifting the suspension order it made on Feb. 13, 2020.

The order signed by SEC-EIPD director Oliver Leonardo was in response to DHI’s petition filed on June 28 to lift the suspension order and reinstate the holding firm’s registration statement and permit to sell securities.

“Wherefore, premises considered, the Order of Suspension dated Feb. 13, 2020 is hereby lifted and the status of Dominion Holdings Inc. shall be changed from ‘suspended’ to ‘registered’ in the Commission’s securities registry,” Leonardo said.

Leonardo said DHI submitted its final amended registration statement on April 17 and the final updated amended registration statement on June 4.

DHI likewise published the notice of filing of the amended registration statement in two newspapers on May 4 and May 6.

“Having submitted the amended registration statement, paid the filing fees thereof and the corresponding fees for the petition, DHI is now compliant with the Commission Order dated Feb. 13, 2020,” Leonardo said.

In January 2020, BDO and BDO Capital & Investments Corp. signed an agreement for the sale of its 88.5 percent controlling stake in then-BDOLF to a new group of investors that included businessmen Luis Yu Jr., Victor Lim Jr. and Vittorio Lim.

After the transaction, the SEC suspended the registration statement of BDOLF in February 2020 to protect investors amid the incomplete and inaccurate disclosure on the sale of the controlling stake.

The unit of BDO immediately asked for reconsideration for the suspension of its registration statement, which prohibited the company from selling shares to the public.

However, BDO said the agreement with the third party buyers lapsed on Jan. 24, 2021 for failure to comply with the closing conditions on account of the non-resolution by the SEC of BDOLF’s request for reconsideration of SEC’s suspension order.

The sale was part of the restructuring of its leasing business via BDOLF to optimize the financial needs of clients in light of new accounting regulations covering lease transactions.

Due to the restructuring, the assets of BDOLF were transferred to other entities of the parent bank, particularly BDO Finance Corp., leaving the unit as a listed holding company of BDO.

Earnings of DHI jumped by 30 percent to P75.9 million in the first quarter from P58.3 million in the same period last year.