Asiabest Group International Inc. (ABG) has called for a 10-day voluntary trading halt of its shares at the Philippine Stock Exchange (PSE) on ‘persistent calls’ from its shareholders and market participants.
The company’s shares were suspended for trading starting on Tuesday through October 28.
Asiabest, which is transforming itself into an infrastructure company, is offering shares worth up to P24.66 billion.
The company is also acquiring the infrastructure and real estate companies of its chairman, Francis Lloyd Chua, for P15 billion.
‘ABG has received calls from shareholders asking why a trading halt was not implemented, stressing that a short, orderly pause would allow full, transparent disclosure and proper price discovery,’ the company said.
‘Since our disclosures on the contemplated fold-in of Concrete Stone Corp., Industry Movers Corp. and Kabalayan (Housing Corp) via Premium Lands Corp., we have received persistent calls from shareholders and market participants for a short pause to ensure full transparency and proper price discovery.’
The specific concerns repeatedly raised include the basis of the company’s P150-million subscription into Concrete Stone, of 10 million primary shares at a discounted price of P15 per share.
‘How the price level relates to independent valuations, how it aligns with the integration plan, and how it impacts ABG’s post-transaction value. These concerns are echoed in public commentary that has amplified the risk of information asymmetry during this transition phase. In particular, recent market columns and commentary have characterized the situation as investors ‘flying blind’ on value until fuller materials are available, reinforcing investor calls for a short, orderly pause,’ the company said.
‘In the absence of the finalized valuations/appraisals and related supporting materials, continued trading risks mispricing of the trading of ABG shares and unequal access to material information. A temporary suspension will curb speculation until the Exchange can disseminate ABG’s complete submissions.’
It said while independent appraisals and valuation reports are being finalized, continued trading risks mispricing and unequal access to material information.
In exchange for the three companies that will be folded into Asiabest, Chua’s Industry Holdings and Development Corp. and Premium Lands will subscribe to up to 600 million new Asiabest common shares at an issue price of P25 per share.
The capital increase will also allow Asiabest to undertake its planned follow-on offering of 300 million up to 620 million primary common shares. The capital hike is still subject to approval by stockholders and the Securities and Exchange Commission.
Asiabest shares were last traded on Monday and closed at P26.95 apiece.