The Philippine Stock Exchange (PSE) has issued a buyback offer to broker-owners of the PSE for the acquisition of as much as P532.10 million worth of shares as part of a plan to cut brokers’ collective ownership down to the law-mandated 20 percent.
The PSE said the buyback will run until Sept. 30, 2019, “unless extended.”
The PSE also said it plans to issue 3.5 million preferred shares to broker-shareholders. The shares will be non-voting, cumulative, non-participating and non-convertible, and redeemable beginning on the third anniversary date of the issuance.
“The non-voting preferred shares shall only be issued to brokers. The terms and conditions of issuance of non-voting preferred shares to brokers, including the dividend rate, shall be fixed by the Board of Directors,” it said.
“The consent of the shareholders will be obtained to approve the creation of the non-voting preferred shares and the amendments of the articles of incorporation for the purpose. The amended articles of incorporation will be submitted to the Securities and Exchange Commission,” it added.
In March, the PSE said brokers own a combined 26.44 percent of the PSE, beyond the mandatory cap of 20 percent ownership by any particular sector in the stock exchange
