PSE Tells SMC to Explain Lack of Disclosure on Petron Purchase

Article excerpt

The Philippine Stock Exchange has issued a show cause letter to San Miguel Corporation (SMC) to explain why the conglomerate should not be penalized for failure to comply with disclosure requirements regarding its planned acquisition of a majority stake in Petron Corporation.

In the letter, the PSE said "SMC failed to provide the Exchange with all the information requested, in violation of the continuing disclosure requirements of the Exchange."

PSE disclosure department head Pete Malabanan has given SMC 24 hours from yesterday to explain in writing why it failed to provide additional information on the option agreement is signed with SEA Refinery Holdings B.V. of the Ashmore group.In its letter to the PSE earlier this week, SMC insisted that it is not required to undertake a tender offer for the remaining public shares of Petron despite its having taken over management of the oil company.

SMC chief finance officer Ferdinand Constantino stressed that it has only signed an option agreement to acquire a firm which owns 50.1 percent of Petron.

"Considering that it is an option which may or may not be exercised, we respectfully submit that the tender offer rules do not yet apply at this point in time," he said but added that "rest assured that SMC will comply with all applicable laws, rules and regulations. …