THE PHILIPPINE STOCK EXCHANGE, INC. PSE to release rules on delisting !-- --
To make its delisting rules at par with other stock exchanges, the PSE will now require the approval of at least 75 percent of total outstanding and listed shares of the company either in a duly convened meeting or by written assent. At present, a company only needs the approval of its incumbent directors before it can delist.
In the draft circular, the PSE also proposed to set a floor price such that the tender offer price will not be lower than the highest value based on the fairness opinion or valuation prepared by an independent body. In a letter to PSE president
"We have noted that several exchanges require a super majority (67 percent or 75 percent) stockholders' approval for voluntary delisting. This is the rule in
Other exchanges in the
The PSE's move to tighten delisting rules came amid a flurry of complaints from minority shareholders unhappy with the tender offer price given by companies that have delisted from the bourse. "PSE revisited the voluntary delisting rules following the receipt of complaints from the market that minority stockholders are essentially forced to accept a company's decision to delist and the tender offer price offered by the listed company or delisting proponent, under the threat of being left with shares that have no secondary market," the PSE said.
© Pakistan Press International, source
