Verdict on Calata out this week

MANILA, Philippines — The Philippine Stock Exchange (PSE) may issue this week the verdict on Calata Corp., which is facing delisting for allegedly violating the PSE’s disclosure requirements, its president and CEO Ramon Monzon said on Friday.

“We hope to come out with a decision next week,” Monzon said on the sidelines of the 26th Economic Journalists Association of the Philippines (EJAP) Business Journalism Awards ceremony on Friday.

Monzon said the PSE would come out with a decision on what would happen to Calata after it declined the offer of the PSE to take the voluntary delisting route.

Calata Corp. told its shareholders that conducting a tender offer to small shareholders – as required by the voluntary delisting route – “will kill the company.”

The company cited insufficient earnings to finance the buyback of shares.

“To liquidate the company just because the PSE wants a tender offer is not only impractical but grossly unfair. It is unfair simply because a regulatory violation by a single shareholder should not be a justification to kill a legitimate business which has been profitably operating for the past decades,” Calata said.

The PSE proposed the voluntary delisting route in contrast to Calata’s plan to just sell out to another company, Millennium Global Holdings Inc.

It also requires the approval of the Securities and Exchange Commission (SEC) for the increase in authorized capital.

However, Calata said this would be the more feasible option for the company.

Calata said in August it would transfer its 81 stake in that company to listed Millennium Global.

Millennium Global, meanwhile, will acquire 81 percent of Calata by subscribing to 2.5 billion shares from Calata’s increase in authorized capital stock.

Post-acquisition, Millennium, using Calata, will purchase the business of its subsidiary Millennium Ocean Star Corp.

Millennium said this would enable the acquired seafood business to use the listed entity in further enhancing its business and fortifying its place as one of the top seafood distributors in the local and international markets.