Q&A - What happens if a company becomes delisted in the Philippine Stock Exchange?
That’s one interesting question I found in Pesos and Sense page which can be one exit strategy of any company to get out of the Philippine Stock Market. The question came out after some related news about PCEV.
Here’s the exact investing question from one facebook user:
Hi...COL informed holders of PCEV shares that PCEV will have a petition for voluntary delisting...what does this mean for a shareholder like me...do I have to sell? what will happen should I decide to sell or not to sell? thanks in advance for your advice
And here’s a short answer given by Sir Aya Laraya
If they delist, you cant trade the shares in the market anymore. That means if you want to sell after delisting, you will personally have to look for a buyer and may capital gains taxes na. Better sell the shares unless you really, really love the company.
There you have it!
So make sure you choose your companies! You definitely do not want the hassle of taking in charge of your company shares after it becomes delisted!
Have millions and fun investing! J
PS1: If you’re a beginner investing in the Philippine Stock Market, download your investing book here – Investing in the Philippine Stock Market for Beginners! If not, share it to your beginner friends!
PS2: Below is a short article of The Daily Tribune showing more details about the delisting move of the company and some requirements of PSE under such delisting circumstance. Get to know what delisting a company is all about!
PLDT Communications and Energy Ventures Inc. (PCEV), formerly Pilipino Telephone Corp., was granted the delisting of its shares from the Philippine Stock Exchange (PSE) and will be effective on May 18.
In a disclosure, the PSE Board has granted the Petition of Voluntary Delisting file by the company during a board meeting last April 25.
The PSE said the delisting of the shares of the company from the Official Registry of the Exchange (electronic board and ticker) will be effective May 18, 2012, Friday, and will be subject to the payment of the required voluntary delisting fee.
Last March 19, PCEV filed a petition for voluntary delisting of its common shares to the PSE. It said it has requested the PSE’s approval of its petition to delist, with May 18, 2012 as the effectivity date of the delisting of PCEV shares.
The firm disclosed that the proposed voluntary delisting has been approved by a majority of the directors during PCEV board meetings on Nov. 2 and Dec. 2, 2011.
And with a requirement under the PSE rules, Smart Communications Inc., the legal and beneficial owner of 99.51 percent of total outstanding shares of the company, will make a tender offer for the 58 million PCEV shares held by other stockholders.
Smart has filed a tender offer statement with the Securities and Exchange Commission last March 15 and the tender offer was last March 19.
Danessa O. Rivera