alliance select SRO to be blocked
Published Jan 19, 2023 03:39 am
Minority shareholders of Alliance Select Foods International, Inc. have asked a local court to prevent the firm from undertaking a P1 billion stock rights offering before holding an annual general meeting (AGM).
In a statement, minority shareholder Albert Hong Hin Kay and lone minority director Hedy Yap Chua sought a restraining order against ASFI officers and directors claiming that they are violating basic stockholder rights by requiring shareholders to subscribe to the capital raising exercise.
photo mwc
The said that the rights offer should be made after the AGM which should have been held on June 15, 2015. The 34-page affidavit was filed against Alliance Chairman Jonathan Dee, Vice Chairman George Sycip, President and CEO Raymond See, and other board members of the canning firm. In a disclosure to the Philippine Stock Exchange last June, Alliance Select postponed its AGM in June 15 to an indefinite date, until the completion of its P1-billion Stock Rights Offering (SRO) from August 17 to 26. Yap-Chua previously expressed concerns about the timing and the propriety of the SRO, as the tuna-canning company has continued to struggle financially in the last two years. In 2014, Alliance Select incurred an all time high net loss of $17 million, up from a loss of $2.92 million the previous year. Currently, the company has borrowed $27.85 million in short-term loans from local banks, foreign banks, and investment banks that are set to mature in 2015. Long-term loans, on the other hand, sum up to $4.65 million with years of maturity ranging from 2016 to 2024. According to the firm’s SRO Prospectus, its proceeds will be used for capital expenditures $5.5 million, $750,000 for new management information system installation, and $13.94 million for working capital expenditures, while it will use $2 million for debt repayment immediately following the offering. The exercise will increase its authorized capital stock from 1.5 billion to 3 billion common shares at a par value of P1.00 per share.(James A. Loyola) Alliance Select Foods International Inc. has named Pilipinas Shell Petroleum Corporation veteran Raymond See as its new president while incumbent president and founder Jonathan Dee has been elected chairman of the board. Based on the firm’s disclosure to the Philippine Stock Exchange, some members of the Dee family are also relinquishing their posts. Dee noted that “I know these developments may raise questions as to whether it is related in any way to the recent disagreements between certain board members. That is furthest from the truth and the timing is nothing more than coincidental.” “It is now the most opportune time to pass the company’s leadership on to a younger, more dynamic management,” Dee said in a statement. He added that “I am confident our new president, Raymond See, brings with him the experience and knowhow to build on past successes of the company and catapult Alliance Select to even greater heights.” Dee said that, “with these changes I think the company is prepared and better poised to address greater international competition.” Independent director George Sycip, has relinquished his duties as the chairman of the board and will instead serve as the vice chairman in place of Alvin Dee. Alvin Dee will continue to advise the company as shareholder. Alvin Dee was replaced as director by See, the new president and chief executive officer while Ibarra Malonzo, will be replaced as director by Atty. Antonio Pacis. “As Chairman I will be focusing on overseeing the strategic direction of the company. This will include deepening market relations and forging further alliances with potential partners” Dee explained. The 46-year-old See rose through the ranks of Pilipinas Shell over the past 24 years. See will be assisted by fellow Shell career executive Lisa Dejadina who was named senior vice president for business development and operational excellence. Meanwhile, company treasurer Joanna Dee-Laurel along with chief operating officer Teresita Ladanga announced their retirement.(James A. Loyola)
photo mwc
The said that the rights offer should be made after the AGM which should have been held on June 15, 2015. The 34-page affidavit was filed against Alliance Chairman Jonathan Dee, Vice Chairman George Sycip, President and CEO Raymond See, and other board members of the canning firm. In a disclosure to the Philippine Stock Exchange last June, Alliance Select postponed its AGM in June 15 to an indefinite date, until the completion of its P1-billion Stock Rights Offering (SRO) from August 17 to 26. Yap-Chua previously expressed concerns about the timing and the propriety of the SRO, as the tuna-canning company has continued to struggle financially in the last two years. In 2014, Alliance Select incurred an all time high net loss of $17 million, up from a loss of $2.92 million the previous year. Currently, the company has borrowed $27.85 million in short-term loans from local banks, foreign banks, and investment banks that are set to mature in 2015. Long-term loans, on the other hand, sum up to $4.65 million with years of maturity ranging from 2016 to 2024. According to the firm’s SRO Prospectus, its proceeds will be used for capital expenditures $5.5 million, $750,000 for new management information system installation, and $13.94 million for working capital expenditures, while it will use $2 million for debt repayment immediately following the offering. The exercise will increase its authorized capital stock from 1.5 billion to 3 billion common shares at a par value of P1.00 per share.(James A. Loyola) Alliance Select Foods International Inc. has named Pilipinas Shell Petroleum Corporation veteran Raymond See as its new president while incumbent president and founder Jonathan Dee has been elected chairman of the board. Based on the firm’s disclosure to the Philippine Stock Exchange, some members of the Dee family are also relinquishing their posts. Dee noted that “I know these developments may raise questions as to whether it is related in any way to the recent disagreements between certain board members. That is furthest from the truth and the timing is nothing more than coincidental.” “It is now the most opportune time to pass the company’s leadership on to a younger, more dynamic management,” Dee said in a statement. He added that “I am confident our new president, Raymond See, brings with him the experience and knowhow to build on past successes of the company and catapult Alliance Select to even greater heights.” Dee said that, “with these changes I think the company is prepared and better poised to address greater international competition.” Independent director George Sycip, has relinquished his duties as the chairman of the board and will instead serve as the vice chairman in place of Alvin Dee. Alvin Dee will continue to advise the company as shareholder. Alvin Dee was replaced as director by See, the new president and chief executive officer while Ibarra Malonzo, will be replaced as director by Atty. Antonio Pacis. “As Chairman I will be focusing on overseeing the strategic direction of the company. This will include deepening market relations and forging further alliances with potential partners” Dee explained. The 46-year-old See rose through the ranks of Pilipinas Shell over the past 24 years. See will be assisted by fellow Shell career executive Lisa Dejadina who was named senior vice president for business development and operational excellence. Meanwhile, company treasurer Joanna Dee-Laurel along with chief operating officer Teresita Ladanga announced their retirement.(James A. Loyola)