MANILA, Philippines – On July 8, the domestic stock market will experience its initial departure for this year as confirmed by the approval from the Philippine Stock Exchange (PSE), which decided to remove Keppel Philippines Holdings Inc. (KPH) from listing.
In a memo released on Tuesday, the Philippine Stock Exchange stated that it has mandated the removal of KPH's stocks from the exchange's official list.
This follows the announcement by Kepwealth Inc., the majority stakeholder, initiating a tender offer aimed at acquiring shares from minority shareholders of KPH.
READ: Keppel suspends trading as shareholders greenlight voluntary delisting
This comprised 5.42 million shares purchased at P27.40 per share, giving KPH proceeds amounting to P149 million from the sale. The tender offer included a 6% premium above its final trading price of P25.85 on May 19, which was prior to the start of the tender offer window.
Consequently, Kepwealth’s ownership stake in KPH has increased to 99.34 percent from the previous 89.86 percent.
This enables KPH to formally exit the PSE listing, as the public ownership has fallen below the required 10 percent threshold.
KPH, which began trading on the Philippine Stock Exchange in 1987, was established as a subsidiary of Keppel Corporation Ltd., based in Singapore. The company conducted operations under the name Keppel Philippines Shipyard Inc., focusing on vessel repairs and construction projects.
It was eventually transformed into an investment-holding firm with additional stakes in the real estate sector.
Earlier, analysts noted that KPH's decision to pursue a voluntary delisting aimed at boosting its market valuation due to being "heavily under-traded."
(Note: This response assumes the intent of conveying similar information with different phrasing; however, please verify financial terminology as per local usage.)
It exits during a turbulent period for investors, primarily driven by the continuing trade tensions and geopolitical unrest in the Middle East.
Involuntary delisting
The biotechnology company Philab Holdings Corp. is also scheduled to exit the domestic stock exchange on July 11. In contrast to KPH, Philab's removal from trading is not voluntary.
The PSE will remove Philab from its listing for consistently failing to submit necessary reports. Trading of the company’s shares was halted in May 2018 due to its failure to release its 2017 annual financial statements.
Philab was established in November 2000 under the name iRipple Inc., initially focusing on the sale of computer hardware and software goods. Over time, its main focus shifted to become that of a biotech firm. INQ