Businessman Robert John L. Sobrepeña’s Metro Global Holdings Corp. (MGH), whose shares have been suspended for 17 years, faces delisting from the Philippine Stock Exchange next month for continuously failing to meet the rules on public ownership.
What happened?
Metro Global fell below the minimum 10 percent requirement after issuing ₱750 million worth of shares to controlling stockholder, Fil-Estate Management, last February 5.
The share issuance was related to its plans to invest in new business ventures such as solar power.
Automatic PSE removal
“If MGH remains non-compliant after six months from February 5, 2024, it will be automatically delisted,” the Philippine Stock Exchange said in an advisory on Tuesday.
Metro Global, which owns a 29 percent interest in the Metro Rail Transit Line 3 project in Metro Manila, has been suspended since 2007.
Its shares were last traded on Feb. 27, 2007, at ₱1 each, valuing the company at ₱2.75 billion.
Solar plans in peril
The company earlier explained the suspension was a voluntary move as it sought to “realign its business and explore new strategic directions.”
The share issuance to Fil-Estate was part of the company’s strategy to diversify into renewable energy, primarily by investing in its subsidiary, Metro Solar Power Solutions, Inc., which has a 65-megawatt solar farm project in Pililia, Rizal.
Metro Global said it aimed to raise funds after the trading suspension is lifted. This appears unlikely with a few weeks to go before its removal from the PSE.
2024 delistings catching up with IPOs
The PSE is drawing in new companies, but the volatile market conditions have made it difficult to attract fresh names.
The bourse saw three new listings this year: OceanaGold Philippines, Citicore Renewable Energy and NexGen Energy Corp.
There were also two delistings: Premium Leisure Corp. and Cebu Holdings Inc.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
