PSE allows trading in PAL Holdings shares to resume Friday

Trading in shares of stocks in PAL Holdings Inc. will resume Friday, July 12, coinciding with the resumption of flights to the 27-member European Union, after the operator of flag carrier Philippine Airlines was able to comply with the 10-percent public ownership required by the Philippine Stock Exchange.

 

"Given the foregoing, please be advised that the suspension on the trading of the company’s shares will be lifted on Friday, July 12, 2013, at 9:00AM," the PSE noted in a July 10 memorandum released Thursday.

 

After selling 2.415 billion new shares to private investors, PAL Holdings asked the PSE to lift the trading suspension imposed by the exchange since the first trading day of the year on Jan. 2.

 

In a separate disclosure, PAL Holdings assistant corporate secretary Cecilia L. Pesayco said the company's public float reached 10.22 percent from 0.55 percent after the Securities and Exchange Commission (SEC) approved an increase in its authorized capital stock. http://www.gmanetwork.com/news/story/315425/economy/companies/pal-holdings-gets-nod-to-raise-capital-stock-for-pse-public-float-minimum

 

"As a consequence of the Company’s compliance with the minimum public ownership requirement, we hereby respectfully request the Exchange to lift the suspension of trading of its shares," Pesayco said.

 

Last month, PAL Holdings issued 2.415 billion common shares at a par value of P1 per share, or P2.415 billion, to accommodate the respective subscriptions of independent investors, representing a 34.5-percent increase in authorized capital stock. http://www.gmanetwork.com/news/story/314791/economy/companies/pal-holdings-sells-2-415b-shares-to-private-investors

 

PAL Holdings sought SEC approval on June 24to raise its capital stock from P23 billion to P30 billion. 

 

In November 2011, the PSE reimposed the minimum public ownership level for listed companies to help improve liquidity and increase public participation in the stock market. But many companies were not able to meet the public float level, prompting the exchange to extended the deadline several times. 

 

Shares of non-compliant firms were finally suspended from trading—from January 2 until June 30—and were to be automatically delisted from the exchange on July 1 if the deficiency remains unresolved.

 

PAL Holdings is jointly owned by the LT  Group and diversified conglomerate San Miguel Corp. (SMC) which acquired a 49 percent stake in the company for $500 million in April 2012.

 

Late Wednesday, the Delegation of the European Union to the Philippines revealed that PAL can again fly to EU countries—three years after the EU banned the Philippines and other countries for failing to comply with international safety standards. http://www.gmanetwork.com/news/story/316895/economy/business/pal-allowed-back-into-europe-s-skies-after-safety-compliance

 

PAL president and COO Ramon S. Ang said the airline will actually resume flights to Paris, London, Rome, Amsterdam, Frankfurt and Madrid sometime in September or October.

 

He noted that PAL is entitled to fly seven times a week to London and Paris, but has to renew its flight entitlements to other countries. — VS, GMA News