Regulators on Friday suspended the trading of shares of SP New Energy Corp. at the bourse as its public float fell below 20 percent.
This developed after the Securities and Exchange Commission approved the increase of its authorized capital stock to P5 billion from only P1 billion.
On February 24, its board approved the acquisition of 100 percent of the outstanding shares of Solar Philippines Power Project Holdings Inc. in various entities through an asset-for-share swap. Solar Philippines subscribed to 24.37 billion SPNEC shares at P2.50 per share in exchange for the assets.
On 8 and 16 May, SPNEC’s board approved the acquisition of Solar Philippines assets paid in cash from the proceeds of Solar Philippines’ subscription to SPNEC shares sourced from the increase in SPNEC’s capital stock, in lieu of a tax-free share swap.
As a result of these transactions, SPNEC’s public float of 47.52 percent fell below the 20 percent minimum requirement.
“Given the foregoing and pursuant to the amended MPO rule and the relevant guidelines, the trading of SPNEC shares will be suspended effective 2 June 2023. Further, should the company remain non-compliant with the minimum public ownership requirement after the lapse of the six-month period from 2 June 2023, SPNEC shall be automatically delisted from the Official Registry of the Exchange,” the Philippine Stock Exchange said.
SPNEC still has to make a statement on the issue.
