PLDT insiders’ paper losses

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Emeterio Sd. Perez

Emeterio Sd. Perez

RFM Corp. had 3,500,403,866 outstanding shares as of Feb. 24. In seven transactions, it reduced this by 6.579 million shares, which it bought back at prices ranging from a low of P3.73 to a high of P3.83. The reacquisition of its own shares reduced the company’s outstanding shares to 3,493,824,866.

The website of the Philippine Stock Exchange showed RFM had 3,485,353,266 outstanding shares as of
Friday, down from 3,500,403,866. The decrease resulted from the continued implementation of RFM’s buyback plan for which it has allocated P300 million.

As of latest filing dated Sept. 9, RFM still had P112,450,102 in the buyback budget after spending P187,549,898 in reacquiring 47,080,600 shares, of which some have been retired. It said “cost of retired shares amounted to P991.76 million” but failed to disclose the number of shares covered by said retirement.

Shares that are bought back remain part of a company’s equity, classified as treasury shares.


When these are retired, they cease as an entry under equity. The retirement of shares requires reduction of a company’s authorized capital stock by the same number of retired shares.

In the case of RFM, over the years it has been increasing the number of its outstanding shares by conversion of preferred shares into common shares and by the reduction of par value.

RFM reduced its par value twice. The par value used to be P10, which later became P2 through a 5-1 stock split, and finally to P1 by reducing the par value from P2.

Aside from stock split, RFM also increased its outstanding shares by declaring a 50 percent stock dividend on
July 28, 1994. None yet to follow? Just asking for the sake of the public.

Napoleon L. Nazareno was president and chief executive officer of Philippine Long Distance Telephone Corp when he bought 132 shares of the company at P3,219.73 each on Sept, 26, 2014.

Only recently, the giant telecommunications group changed its identity with a much shorter PLDT Inc. for corporate name.

When PLDT share price fell, he increased his holdings by 60 shares which he bought on Sept. 29, 2014 at P3,100 each. He followed up this acquisition with buying 60 more shares at P3,041.60 each on Oct. 2, 2014.

In his latest filing, Nazareno reported his ownership of 20,299 PLDT shares, which at his acquisition price of P3,041.60, would give him paper wealth of P61,741,438.40. At PLDT’s close of P1,869 on Friday, the value of Nazareno’s holdings dropped to P37,938,831, making him poorer by P23,802,607.

Helen Y. Dee is a member of PLDT’s 13-person board. As an insider, she owned 1,178 PLDT shares as of June 14, 2016. Her earlier acquisitions included 320 shares at P3,050 each on Oct. 3, 2014. At this price, her PLDT holdings were worth P3,592,900. The stock’s P1,869 close on Friday made her poorer by P1,391,218.

Manuel V. Pangilinan, PLDT chairman, owns 248,450 shares, which gave him P464,353,050 paper wealth at P1,869 per share.

Gov’t money in Alliance Select

In 2015, Philippine Fisheries Development Authority (PFDA) employed one general manager; one acting GM who eventually assumed the twin responsibility of acting GM/OIC GM; one OIC GM; and two OIC assistant GMs.
For the year 2015, the government spent a total of P8,870,565.90 for the salaries of PFDA officials. The amount may not be bad for a year of work. The question, though, is why the officials PFDA hired did not last long in office.

For example, Eduardo Mendez Chu was a BOT (board of trustees) member for one month and GM for 1.43 months. During the brief period of his employment, he received a basic salary of P111,242.09 plus additional pays and perks amounting to P19,318.18.

If you could not believe PFDA’s long list of officials, try surfing the website of the Commission on Audit which would show you how this happened In reply to: 2015.

The agency’s top executives in 2015, according to COA, also included non-salaried officials. These were a BOT alternate chairman; three BOT members; and nine BOD alternate members.

By the way, were these PFDA officials responsible for using public funds in buying 346,207 shares in Alliance Select Foods International Inc.? If so, then they made the wrong choice of investments.

If PFDA acquired Alliance Select shares at P1.35 each, at the market’s low of P0.80, the government incurred a paper loss of P0.55 per share, or a total of P190,523.85.

Finally, isn’t PFDA a regulatory agency? If so, why did it invest government funds in Alliance Select?
Again, just asking.

esdperez@gmail.com

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