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Stock Commentary

Metro Global given 6 months to avoid involuntary delisting

Merkado Barkada
Metro Global given 6 months to avoid involuntary delisting

The PSE gave notice to Metro Global Holdings [MGH suspended] [link] that it has six months to increase its public float above 10% to comply with the PSE’s Minimum Public Ownership (MPO) rule or be “automatically delisted” from the stock exchange. MGH’s public float was pushed below the MPO threshold after a transaction to increase MGH’s authorized capital stock was approved by the SEC, and a large block of shares was “deemed issued” to MGH’s parent company, Fil-Estate Management (FEM). According to MGH’s website, the company’s shares “have been voluntarily suspended since March 20, 2007, to allow the Company to re-align its business and explore new strategic directions.”


MB bottom-line: I’m not exactly sure what combination of events could lead to a company living on the PSE for 17 years in a state of “voluntary suspension”. Regardless, MGH has had more than enough time to go on its own Eat Pray Love journey of self-discovery, and I’m glad to see the PSE start the clock on removing this stock. I have nothing against MGH or its owner, Bob Sobrepeña. But your stock needs to be tradeable for the “exchange” part of the PSE to make any sense. Maybe Mr. Sobrepeña can pull a Leviste Surprise and donate a buttload of shares to some clearly-aligned foundation to cure MGH of its MPO problem.

 

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Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.

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