MANILA, Philippines – The Philippine Stock Exchange is looking into the different issues surrounding the sale of the radio frequencies by listed company Liberty Telecoms Holdings Inc.
In a chance interview yesterday, PSE chief operating officer Roel Refran said the PSE was studying the whole deal thoroughly.
“We’re in the middle of that regulatory process to make sure whether there have been requirements that should have been filed. The offer period has started. The Securities and Exchange Commission is also looking into that,” Refran said on the sidelines of a forum yesterday.
San Miguel Corp. sold its telecommunications assets under Liberty to industry giants Philippine Long Distance Telephone Co. and Globe Telecoms.
It did not disclose the value of these assets which include the radio frequencies because these were not considered typical assets.
According to SMC, no value had been assigned to the 700 MHz because the company never got to use it.
“There are different issues involved. (San Miguel) is maintaining their position. We’ll have to evaluate,” Refran said.
The PSE is also looking into the proposal of the Shareholders Association of the Philippines (SharePhil), a group that promotes the rights of minority shareholders in the country, on how to come up with a fair valuation of share prices in cases of tender offer for voluntary delisting.
SharePhil has been receiving requests for help from minority shareholders including those of Liberty Telecoms who are locked in a row with the new owners of the company whose buyout price for the shares is deemed too low.
Vega Telecom Inc., which is now controlled by PLDT and Globe, launched the tender offer last Aug. 24. The offer will end on Sept. 21.
SharePhil president Francis Lim said one way to improve valuation is for the PSE to be the one to hire a third party that can provide a fair and accurate valuation instead of the listed company.
This will be in contrast to the common practice wherein the listed company itself will be the one to hire the third party service provider.
“To minimize doubt of the investing public on the fairness of tender offer prices, we propose that the exchange issue a new rule governing tender offers other than those covered by Sections 18 and 19 of the Securities Regulation Code,” SharePhil said.
“The valuation of the appraisal firm that will render the fairness opinion or valuation report must be selected by the PSE and not by the PLC or tender offer from a short list of independent third party appraisal or valuation proponents,” it added.
PLDT and Globe jointly acquired Liberty and other telco-related assets for P70 billion last May.
Vega offered to acquire shares held by minority investors at P2.20 each, which was deemed low by the latter.
Minority shareholders said the shares should be valued at close to P5 per share.
They are contesting how the company was valued since a fairness opinion and valuation report did not take into account Liberty’s valuable 700 MHz radio frequencies.