What does E in ESOWN and ESOP stand for?

Credit to Author: EMETERIO SD. PEREZ| Date: Thu, 16 May 2019 17:08:18 +0000

EMETERIO SD. PEREZ

The website of the Philippine Stock Exchange (PSE) showed Megawide Construction Corp. (MGC) having issued 2,399,420,199 common shares. Minus 315,124,782 treasury shares, the company is left with 2,084,295,417 outstanding common shares, according to a public ownership report (POR) as of Mach 31, 2019.

Megawide listed in the same POR two principal stockholders as holders of 1,330,634,698 MGC common shares, or 63.88 percent of outstanding. Of the total, Citicore Holdings Investment Inc. directly owns 715,925,501 MGC common shares, or 34.12 percent. Megacore Holdings Inc. holds the remaining 617,709,197 MGC common shares, or 29.56 percent.

The public stockholders, on the other hand, were credited with 734,886,430 MGC common shares, which represent 35.26 percent of outstanding. Their ownership even tops Citicore’s 34.12 percent and Megacore’s 29.56 percent.

If Megawide’s public stockholders own 734.886 million MGC common shares, or 35.26 percent of outstanding, they own much more in SM Investments Corp. (SMIC), which credited them with 533,576,948 SMIC common shares, which are equivalent to 44.30 percent of 1,204,582,867 outstanding common shares.

On May 15, 2019, Megawide common shares opened trading at P21, hit a high of P22.40, fell to a low of P21.75 and closed the session at P22. The stock recorded a 30-day high of P23 and a 30-day low of P20.55. SMIC common shares opened trading at P905, peaked at P917, dropped to a low of P890 and closed the session at P800.

New corporate name

Starting May 9, 2019, Ayalaland Logistics Holdings Corp. (ALHC) is the new name of Prime Orion Philippines Inc. Its parent company, however, will still be Ayala Land Inc. (ALI), which is also a listed company.

ALI’s subsidiaries/affiliates include Orion Land Inc., Tutuban Properties Inc., Orion Property Development Inc., LCI Commercial Ventures Inc., FLT Prime Insurance Corp., Laguna Technopark and Ecozone Power Management Inc.

In an amended general information sheet (GIS), Ayalaland said it has 7.5 billion authorized capital stock (ACS) of which 4.923 billion ALHC common shares are owned by 801 stockholders divided into 788 Filipinos and 13 foreigners.

The company’s GIS listed ALI as the majority stockholder with 2.703 billion ALHC common shares, or 54.91 percent. Orion Land held 538.977 million ALHC common shares, or 10.95 percent.

As record stockholder, PCD Nominee Corp. held 985.450 million ALHC common shares for Filipinos and 48.887 million ALHC common shares, or 0.99 percent, for various non-Filipinos.

The other ALHC stockholders in the amended GIS were Orion Land, 538.977 million common shares, or 10.95 percent; Lepanto Consolidated Mining Co., 179.640 million ALHC common shares.

Ayalaland also listed 781 stockholders under “others” with 61.572 million ALHC common shares, or 1.25 percent.

On May 15, 2019, ALHC common shares opened the day at P3.04, hit a high of P3.05, fell to a low of P3 and closed the session at P3.04. The stock recorded a 30-day high of P3.12 and a month’s low of P2.82.

Macay Holdings Inc. (MHI) reported in a public ownership report (POR) dated April 30, 2019 the public stockholders as holders of 120.761 million MHI common shares, or 11.30 percent of 1.068 billion outstanding common shares. It listed Mazy’s Capital Inc. as principal stockholder with 940.092 million MHI common shares, or 87.99 percent.

In the top 100 list of Macay’s stockholders as of March 31, 2019, Mazy’s is on top but held slightly less than the number in the company’s POR. Instead of 940.092 million, Mazy’s holdings dropped to 900 million Macay common shares, or 84.24 percent.

PCD Nominee held 111.490 million Macay common shares for non-Filipinos and 54.307 million Macay common shares, or 5.06 percent, for Filipinos.

‘Buy’

On Feb. 4, 2019, Antonio I. Panahon, a member of the board of Macay Holdings, increased his indirect holdings to 7.534 million Macay common shares after buying 7.540 million common shares at P9.57 each. He directly owns a nominal Macay common share.

Macay common shares opened trading on May 15, 2019 at P11.84, which was the stock’s high, fell to a low of P10.10 and closed the session at P10.70. On May 14, 2019, Macay common shares closed trading at P11.84.

Due Diligencer’s take

Listed companies should spell out in their disclosures the acronyms ESOWN and ESOP. Do they mean executive stockownership or employees’ ownership? On the other
hand, if by ESOP a company is referring to employees stock ownership plan or program, they should say so.

In short, why not spell out ESOWN and ESOP so as not to mislead the public that these two words indicate generosity of employers.

For example, Ayalaland Logistics included in an amended GIS “ESOWN” administrator 2018 as holder of 26,629,700 ALHC common shares, or 0.54 percent. What does ESOWN mean to the public?

Of course, the more knowledgeable about listed stocks would know the difference between ESOWN and ESOP. How about the others, who, most probably, are among listed companies’ public stockholders.

As a matter of fact, if ESOWN and ESOP mean employees’ stock ownership and employees’ stock ownership plan, the majority stockholders must be very generous to their workers.

By the way, why should insiders be allowed to trade the stocks when they are looked up to by the rank-and-file employees as their top executives? Do the public stockholders need to read preliminary and definitive information statements to know what ESOWN and ESOP stand for? Just asking.

Email: esdperez@gmail.com

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