MBC’s 120,787 treasury shares at P16.38 equals P1.978M
Credit to Author: EMETERIO SD. PEREZ| Date: Tue, 08 Jan 2019 16:24:49 +0000
As co-owners of Manila Broadcasting Co. (MBC), the public stockholders owned 41.175 million MBC common shares, or 10.23 percent of 402.683 million MBC common shares as of Dec. 31, 2018, according to a public ownership report (POR) posted on the website of the Philippine Stock Exchange (PSE).
MBC summarized the POR filing as follows: 402.683 million outstanding MBC common shares; 402.804 million listed MBC common shares. It said it did not have foreign ownership limit because foreigners are not allowed to own shares in a media entity.
The company listed Elizalde Holdings Corp. as direct owners of 139.559 million MBC common shares, or 34.6572 percent. In addition, it is also MBC’s indirect stockholder as owner of Elizalde Land Inc., which held 87 million
MBC common shares, or 21.6051 percent; Cebu Broadcasting Co., 50 million MBC common shares, or 12.4167 percent; Sunshine Inns Inc., 10 million MBC common shares, or 2.4833 percent; and Philippine Broadcasting Co., five million MBC common shares, or 1.2417 percent.
Romulo, Mabanta, Buenaventura, Sayoc & Delos Angeles held 69.911 million MBC common shares, or 17.3613 percent.
All in all, the Elizaldes directly and indirectly owned 291.559 million MBC common shares, or 72.404 percent, as of Dec. 31, 2018.
The nine members of MBC’s board held 32,282 MBC common shares, or 0.0027 percent, while the company’s officers owned 6,200 MBC common shares, or 0.0015 percent.
On Jan. 4, 2019, MBC common shares were last traded at P16.38 per share.
Acquisition 1
Ramon Sambrano Monzon, PSE president and chief executive officer, paid P3.907 million in buying 28,000 PSE common shares, or P139.55 each, on Dec. 28, 2018. In a disclosure, he wrote “nil”, which means none as “beginning balance” of his ownership of PSE common shares. In a footnote, PSE said “the subscription is pursuant to the availment and payment of shares under the PSE Employee Stock Purchase Plan (ESPP).”
Acquisition 2
Jinky Atenta Alora, a PSE assistant vice president, who also heads the exchange’s internal audit group, acquired 4,000 PSE common shares at P139.55 each on Dec. 28, 2018. The acquisition increased the number of PSE common shares she owned to 8,010 PSE common shares. Again, the exchange said “the subscription is pursuant to the availment and payment of shares under ESPP.”
Acquisition 3
Alejandro Garcia Gorgollos, vice president for planning and administration of Cemex Holdings Philippines Inc., increased the number of common shares he owned in the company to 75,787 after buying 75,786 Cemex common shares on Dec. 21, 2018. He used to own a nominal share he held in trust to qualify him as director of the seven-person board.
Ownership profile
As of Nov. 30, 2018, PCD Nominee held 260.448 million Central Azucarera de Tarlac, Inc. (CAT) common shares, or 92.18 percent, as record stockholder for CAT Resource & Asset Holdings Inc., which lodged the common shares it owned in CAT.
In a preliminary information statement (PIS), CAT listed Martin Ignacio P. Lorenzo with 102.876 million CAT common shares and Fernando Ignacio C. Cojuangco with 98.842 million CAT common shares for a total of 201.718 million CAT common shares, or 71.40 percent. Luisita Trust Fund held as of the same cut-of date 46.36 million CAT common shares, or 16.41 percent.
In an explanatory note, CAT said members of CAT’s seven-person board and company officers owned 201.745 million CAT common shares, or 71.40 percent.
While CAT attributed to CAT Resource the ownership of 260.448 million CAT common shares, or 92.18 percent, the company’s POR listed two principal stockholders such as CAT Resource and Luisita Fund with 201.718
million CAT common shares, or 71.4 percent, and 46.36 million CAT common shares, or16.41 percent, for total holdings of 248.078 million CAT common shares, or 87.81 percent.
The public stockholders, on the other hand, were credited with 34.435 million CAT common shares, or 12.19 percent.
Due Diligencer’s take
The PSE website listed 10.23 percent as MBC’s “free float” level. The percentage will translate to 41.194 million of the company’s 402.683 million outstanding common shares.
Since MBC reported having issued 402.804 million common shares and 402.683 million common shares as outstanding, the difference between the two numbers will be 120,787. This will mean MBC will have 120,787 treasury shares, which it had not retired for reason known only to Fred Elizalde, chairman of the board.
Due Diligencer could only guess what the Elizaldes intend to do with 120,787 treasury shares—wait for the market price of MBC to increase a little bit higher and sell them at a profit. At P16.68 per MBC common share, the company would have raised P1,978,491. Ranged against acquisition cost of P120,787, the company could have gained a gross profit of P1,857,704.
Isn’t P1,857,704 a good gross income for MBC even if it’s only based on assumptions? Just asking.
esdperez@gmail.com
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