Written by Miguel R. Camus
BusinessMirror
THE Securities and Exchange Commission (SEC) is asking listed Eton Properties Philippines Inc., Paramount Landequities Inc. and Saturn Holdings Inc. to prove that they belong to the Lucio Tan Group of Companies in connection with the transfer of the 12-hectare Eton Centris development in Quezon City.
The corporate regulator said this is needed if Paramount wants to be exempted from making a tender offer to shareholders of Eton. The former acquired a 55-percent stake in the listed property developer in October.
As provided under the Securities Regulation Code, a company that acquires 35 percent of a listed firm should offer to buy the shares of existing stockholders within a 12-month period.
Paramount has since requested for exemptive relief from the rule as it pointed out that Eton is majority owned by Saturn, which is likewise “beneficially” owned by Lucio Tan’s group on top of a certification issued by Paramount’s corporate secretary.
In a letter sent by the SEC to Paramount on January 6, the SEC said the “mere issuance of a certification stating that all the shares of Paramount are held in trust for the benefit of Mr. Lucio Tan and his family is not conclusive proof that the said companies belong [to the group].”
The SEC furthermore directed the firms to submit a Deed of Absolute Trust executed between the three parties.
In an interview, SEC corporate secretary Gerard Lukban said the SEC has not yet received the said requirements. He added the request by Paramount for exemptive relief is tantamount to an acknowledgement that the firm had breached the tender offer rule. Read more...
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