Alliance Select Foods suddenly realized it owns land
Alliance Select Foods International [FOOD 0.52 unch; 0% avgVol] [link] requested the PSE to adjust its limit on foreign stock ownership to 40%, down from the current 100%, to ensure that it remains in compliance with “Philippine law and jurisprudence” against the foreign ownership of land.
FOOD noted that its articles of incorporation authorize the company to purchase and own land, and that its subsidiary, Alliance MHI Properties, owns land in General Santos City that sits under a factory that it uses. Therefore, FOOD argues, its foreign ownership should be limited to 40% to stay on the right side of the law.
MB BOTTOM-LINE
It feels wild to me that this setting is something that a company needs to manually adjust, especially in cases where the situation is one that has been in existence for quite some time. It’s not like FOOD just acquired the subsidiary and notified the exchange about its landholdings to make sure that its foreign ownership levels remain legal. I would love to know more about how this setting is determined because it seems to me like it would be a fairly simple “CTRL-F” thing for the exchange to do prior to listing to look for “real estate”, and limit foreign ownership to 40% as a default until the company is able to show (or represent) that it has no landholdings on the books.
--
Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
- Latest