PSE delists Alphaland over disclosure violations

MANILA, Philippines - The Philippine Stock Exchange (PSE) has decided to strike off upscale property developer Alphaland Corp. from its roster of listed companies as penalty for violating disclosure requirements.

On top of the delisting punishment, Alphaland has also been banned to apply for relisting within five years after its delisting date. Its top officials, chairman and chief executive officer Roberto V. Ongpin, president Mario Oreta, and corporate secretary Rodolfo Ma. Ponferrada have likewise been disqualified “from becoming directors and executive officers in any company applying for listing with the PSE.”

The PSE said its decision came after a series of delisting hearings which were conducted in line with the local bourse’s involuntary delisting procedures, which gave Alphaland opportunities to explain its side and submit pertinent documents and its position paper.

“The PSE observed due process in handling the case of Alphaland Corp. The decision was arrived at to ensure that we do not fail in our obligation as a regulator of listed companies and to safeguard the welfare of the investing public,” PSE president and CEO Hans B. Sicat said.

But in a letter sent by Ongpin to the PSE’s board of directors, Alphaland’s top official maintained that the company has faithfully complied with the PSE’s disclosure rules and at the same time requested the exclusion of Oreta and Ponferrada from the five-year disqualification penalty.

“I have always been consistent in my position that the disclosures Alphaland made, considering the supervening business aspects and exigencies involved, are not violative of the disclosure rules and, more importantly, were not intended to prejudice the public in any way,” Ongpin, who is presently in Europe, said in his letter.

“Consistent with this belief, I directed Mr. Ponferrada to follow my explicit instructions in regard to the disclosures in question. He simply implemented them as an officer of Alphaland. As far as Mr. Oreta is concerned, I categorically state that he had nothing to do at all with the disclosures in question. Hence, I believe  that a serious injustice would be done if both Attys. Oreta and Ponferrada would be subjected to the five-year disqualification,” he added.    

Delisting serves as the maximum penalty that can be imposed by the PSE on an erring company.

The PSE said Alphaland’s delisting will take effect after the completion of a tender offer to the property firm’s retail or non-strategic shareholders as of Jan. 23, 2014.

It said the tender offer is required in consideration of the minority shareholders of the company as well as for the maintenance of a fair and orderly market.

Alphaland is given 60 days to complete the tender offer.

“Disclosure violations are serious violations not just against the Exchange but more importantly to investors.  Upholding market integrity is one of our primary mandates as an Exchange and we assure the public that we will continue to carry out our rules and mete out the corresponding penalties for any such violations,” Sicat said.

Alphaland’s shares have been suspended for trading since Jan. 20 of this year.

The PSE initiated involuntary delisting proceedings on the property firm in March following its violations of the disclosure rules and other rules of the Exchange.