If you own stocks of Alaska Milk Corporation (AMC), make sure you sell your shares to the company’s majority shareholders during the Tender Offer period, unless you want to hold on to those shares even if the stock will cease trading on the Philippine Stock Exchange (PSE) by November.
Public float level rule
Last month, the PSE reminded publicly traded companies to comply with the 10% minimum public ownership requirement or face possible delisting by the start of 2013.
Alaska Milk is one of 27 companies in danger of being removed from the PSE because its public float level stood at only 2.28% as of June 2012.
The public ownership rule requires publicly traded companies to have at least 10% of its outstanding stock to be owned by the general public and to be freely traded in the market.
Instead of issuing more shares to the public, Alaska Milk Corp. announced it will voluntarily delist from the PSE starting November 5, 2012. Stockholders are thus invited to sell back their shares prior to the trading termination.
Alaska Milk majority shareholder FrieslandCampina Investments Holdings Company Philippines Inc. (FC) is paying minority shareholders P24.00 apiece, or P23.87 net of charges.
The company said more than 14.94 million shares, or 1.6% of total outstanding stock, remains in the hands of the public. Minority shareholders interested to sell back their shares only have until October 2 to avail of the tender offer.
Alaska Milk earned P363 million net income during the first quarter of 2012, up 44% from P252 million. Net income in 2011 reached P1.1 billion, down 39% from P1.8 billion in 2010.