Ongpin's Alphaland sues Ashmore executives over misrepresentation

The management of Ongpin-led property developer Alphaland Corp. lodged a criminal complaint before the Securities and Exchange Commission (SEC) against two executives of UK-based Ashmore group for supposedly misrepresenting a 2.5 percent stake sale in the company.

 

In an e-mailed statement Wednesday, the firm claimed the Ashmore executives – Alexandra Autrey and Thomas Donnely – misrepresented a P942-million deal involving the sale of a 2.5 percent equity interest in Alphaland on December 31, 2012, violating the Securities Regulation Code.

 

In order to meet the 10 percent public float rule by 2013, Ashmore on January 2, 2013 supposedly sent Alphaland a disclosure signed by Autrey saying that Ashmore unit Alphaland Holdings (Singapore) Pte Ltd. sold 49.608 million common shares equivalent to 2.5 percent of Alphaland to another Singaporean company owned by investment firm Credit Suisse.

 

The shares were supposedly sold at P19 apiece on December 31, 2012.

 

The sale allowed Alphaland to comply with the 10 percent minimum public float required by the Philippine Stock Exchange and the SEC.

 

But recently, Ashmore senior management supposedly found out that the 2.5 percent sale of Alphaland was simulated and Ashmore continues to own the block of shares, based on a written communication from Thomas Donnelly to an executive of a party interested in buying out Ashmore's entire stake in Alphaland.

 

Both Autrey and Donnelly are executives of London-listed firm Ashmore Group Plc.

 

"This criminal complaint is a natural consequence of our disclosure to the PSE and the SEC as well as the Financial Conduct Authority of London regarding the misrepresentation," the Alphaland statement read.

 

If found guilty by a Philippine court, the Ashmore officers may be sentenced to a prison term ranging from 7 to 21 years, according to Alphaland.

 

On Tuesday, Alphaland said the group led by businessman Roberto V. Ongpin now has the controlling stake in the company after a capital call that diluted former majority shareholder UK-based Ashmore group.

 

The Ongpin group owns 50.57 percent of Alphaland and 13 board seats, while Ashmore’s holdings was reduced to 24.41 percent and two board seats. – Danessa Rivera/VS, GMA News