The Market Monitor Minding the Nation's Business
By Riza Lozada
Listed Alliance Select Foods International Inc. (ASFII) will pursue the use of the P1 billion in proceeds from its fully-subscribed stocks right offer for working capital, debt servicing and capital expenditures, despite a boardroom dispute that resulted in the court-ordered postponement in the companys’ annual meeting, ASFII said in a report to the bourse.
A court order halted the holding of the annual meeting of ASFII in response to a petition of the Singapore-based majority shareholders of the firm.
ASFII said its minority shareholders also expressed support to the management team to boost shareholders’ value despite the legal battle posed by the Singaporean-led majority shareholders of the company.
In its report to the bourse, ASFII said its annual stockholders’ meeting was halted due to a temporary restraining order (TRO) issued by the Court of Appeals that directed ASFII to maintain a status quo.
“The Court of Appeals released a TRO dated 16 December 2015, enjoining ASFII (the Company) and all officials acting under its authority to maintain and preserve the status quo pending resolution of the Petition for Review (with Prayer for the issuance of a Temporary Restraining Order and/or Preliminary Injunction) filed by Harvest All Investment Limited, Victory Fund Limited, Bondeast Private Limited, Albert Hong Hin Kay, and Hedy C. Yap Chua with the Court of Appeals on 10 September 2015,” said ASFII.
With the TRO in effect, the stockholders’ meeting was called to order then the TRO was announced and the proceeding was adjourned.
ASFII said that it believes that a few of its shareholders led by Hedy Yap-Chua “seem intent on continuing their efforts to disrupt company operations.”
“Their actions have caused delays especially towards the new management’s turnaround efforts. Their acts run counter to their claims of a supposed desire to improve the company’s governance, efficiencies and profitability,” ASFII said.
The company’s share price has dropped 44 percent from a one-year high of P1.31 per share to P0.74 per share partly as a result of the dispute.
The same disclosure said that the minority shareholders have expressed frustration over the actions of the Hedy-led bloc.
“We stand behind the management team in their task to boost shareholder value and improve corporate governance. We call for all directors to act in the best interest of the company rather than for their own self-interests,” said Nelson Joaquin, a minority shareholder, in response to the TRO.
“The planned stockholders meeting on the 16th of December follows a successful, fully subscribed P1B stock rights offering recently conducted by the Company.
The P1B cash is earmarked for working capital requirements, debt servicing and capital expenditures aimed to boost shareholder value. The Hedy-led bloc did not participate, thus allowing themselves to be diluted,” ASFII said.