Insiders’ acquisitions
Credit to Author: EMETERIO SD. PEREZ| Date: Thu, 15 Aug 2019 16:21:37 +0000
Businessman Roberto V. Ongpin indirectly owns 1,485,685,983 common shares in Atok-Big Wedge Co. (AB), which is equivalent to 58.38 percent of 2.545 billion outstanding common shares, according to the company’s public ownership report (POR).
A general information sheet (GIS) for 2019 named Boerstar Corp. as holder of 1,775,218,804 AB common shares, or 69.75 percent, the reason Mr. Ongpin “indirectly” holds 1,485,685,983 AB common shares, or 58.38 percent.
One is an indirect stockholder when he/she owns the principal stockholder, which, in turn, holds common shares in a listed stock. In Atok’s list of top 100 stockholders as of June 30, 2019, Boerstar topped the roster with 1,775,218,804 AB common shares, or 69.75 percent.
Mr. Ongpin’s ownership of Boerstar made him an indirect stockholder of Atok. The same is bolstered by the fact that he is identified as the company’s beneficial owner of 1,485,685,983 AB common shares, or 58.38 percent, according to Atok’s definitive information statement (DIS).
The same DIS also named Eric O. Recto also as an indirect holder of Boerstar-held 289,532,821 AB common shares, or 11.38 percent.
When added, 2,284,221,411 AB common shares held by Atok’s 13 directors, 260,778,589 AB common shares equals 2.545 billion outstanding AB common shares.
On Aug. 14, 2019, an Atok common share opened trading at P12.52, hit a high of P12.98, dropped to a low of P12.50 and closed the session at P12.70. It hit a 30-day high of P17 and fell to a month’s low of P11.02.
Additional ‘buys’
Enrique M. Aboitiz Jr. is chairman of the nine-person board of Aboitiz Equity Ventures Inc. (AEV). Prior to his acquisitions of additional common shares in 12 trades, he owned 453,100 AEV common shares, or 0.008 percent. His acquisitions increased his ownership to 1,229,500 AEV common shares, or 0.022 percent.
Of 453,100 AEV common shares, Aboitiz indirectly owned 447,100 common shares. He directly held 6,000 AEV common shares.
In a statement of beneficial ownership of securities, Aboitiz said his additional “buys” are lodged with PCD Nominee Corp.
On Aug. 6, 2019, Aboitiz bought 4,090 AEV common shares at P49.55 each; 10,000 AEV common shares at P49.70 each; 10,000 AEV common shares at P49.75 each; 40,000 AEV common shares at P49.80 each; 20,000 AEV common shares at P49.85 each; 1,910 AEV common shares at P50 each; and 108,000 at P49.95 each.
On Aug. 7, 2019, Aboitiz bought 2,800 AEV common shares at P50 each. He followed this up on Aug. 8, 2019 by buying 198,400 AEV common shares at P49.95 each and 158,900 AEV common shares at P49.85 each.
On Aug. 9, 2019, Aboitiz bought 102,600 AEV common shares at P49.95 each and 119,700 AEV common shares at P50 each.
On Aug. 14, 2019, each of AEV common shares opened trading at P51, which was also its high. It dropped to a session’s low of P49.50 but closed the session higher at P49.45. The stock hit a 30-day high of P59.50 and fell to its month’s low of P49.
Due Diligencer’s take
As this writer has long been pointing out in previous pieces, the very rich families in this country do not make their companies public for obvious reason: they do not want anyone among their public stockholders to even have a glimpse of what a boardroom looks like.
It is up to the officials of the Securities and Exchange Commission to do their own analysis of why being publicly traded is not the same as being “public”.
Being publicly traded means only a portion of a listed company’s common shares are either bought or sold by any of the public investors, who may, at the same time, be stockholders.
It is even worrisome when the same listed stocks make their public stockholders their majority stockholders. Being the majority, however, does not translate the directorship or directorships.
For example, of AEV’s 5,632,792 outstanding common shares as of March 31, 2019, the public stockholders were credited as holders of 2,638,823,646 AEV common shares, or 46.85 percent.
As significant stockholders, public stockholders of Aboitiz Equity Ventures should have been allowed to four directorships, but such was not the done.
Instead, AEV appointed three independent directors led by Raphael P.M. Lotilla. The two others listed on PSE website are Jose C. Vitug and Manuel R. Salak 3rd.
How come Aboitiz Equity Ventures and other companies listed on PSE prefer to appoint independent directors, who may not qualify at all to have themselves elected?
Email:esdperez@gmail.com