Philippine Stock Exchange Tightens Voluntary Delisting Rules

(Bloomberg) -- The Philippine Stock Exchange wants shareholders to have a say in any company delisting and will now require the tender offer price to consider the stock’s volume-weighted average price in the one year preceding the plan.

Votes cast against the delisting should not be more than 10% of the total outstanding and listed shares of the company, according to the salient provisions of the amended rules that take effect immediately. The memo was posted on the website on Dec. 21.

Previous rules require only the approval of the board of directors and the minimum tender offer price would typically be based only on fairness opinion, according to a report of BusinessWorld.

Key Amendments

• Shareholders owning at least two-thirds of the total outstanding and listed shares of the company must also approve the delisting along with at least two-thirds of the entire board including at least two of its independent directors
• The minimum tender offer price shall be the higher of either the highest valuation based on the fairness opinion of an independent provider or the volume weighted average price of the security for one year immediately preceding the disclosure of the delisting approval

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