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After failing to auction off the shares held by moribund brokerage
firms, the Philippine Stock Exchange will seek advice from the
Securities and Exchange Commission on the disposition of such shares.
PSE had been unsuccessful in bidding out the
shares held by inactive brokerage firms Asian Capital Equities Inc.
(ACEI) and Marino Olondriz y Cia as none stepped in to buy.
Because of the failed bidding, the bourse has no
recourse but to ask for the regulators’ help in the disposal of
the orphaned shares, PSE President and Chief Executive Francis Lim
said.
One possibility is to offer these through the
MakTrade System and hire a broker to act on PSE’s behalf.
Lim also suggested that the shares be used to
pay for the liabilities of ACEI and Marino Olondriz.
PSE’s market regulation division auctioned off
the 50,000 PSE shares held by ACEI and another 50,000 held by Marino
Olondriz for a minimum price not less than the closing price of the
PSE shares immediately prior to the public sale.
Last year, the PSE sought the public’s help in
tracking down Francisco Borromeo, the president of ACEI, when the
company collapsed almost five years ago. The Makati Regional Trial
court issued warrants of arrest for seven counts of violation of
securities laws against Borromeo in connection to the closure of
ACEI.
Through a joint audit conducted by the
regulators, it was found that the firm had “questionable deals and
accounts, which triggered ACEI’s financial failure,” PSE said.
The results of the investigation became the basis for the warrants
against its former president. On November 2003, the SEC ordered the
PSE to take over the ACEI to protect the interest of its clients.
A few weeks ago, the PSE sold the trading rights
of ACEI for P12.3 million to Wee Lee Hiong. The trading rights had a
floor price of P8.5 million.
-- Likha C. Cuevas-Miel
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