The Philippine Stock Exchange (PSE) has imposed an indefinite trading suspension on the shares of House Speaker Martin Romualdez’s Bright Kindle Resources & Investments Inc. (BKR) after it disclosed the planned P5 billion acquisition of a magnetite mining firm.
The PSE said Bright Kindle disclosed that the Board of Directors of its wholly-owned subsidiary, Brightstar Holdings and Development Inc. (BHDI), approved the acquisition of Strong Built (Mining) Development Corporation (SBMDC) for P5 billion worth of BHDI shares and assets.
“In view of the materiality of the information reported in the Company’s disclosure and pending submission of additional information regarding the transaction, the trading of BKR shares was suspended effective at 9:30 a.m. today, May 22, 2024,” the PSE said.
The bourse did not set a date for the lifting of the suspension, adding that “the Exchange will inform the Trading Participants and the investing public of further developments on the matter.”
Bright Kindle said BHDI is increasing its authorized capital stock to up to P7 billion divided into 70 billion common shares with par value of 10 centavos (P0.10) per share.
BHDI will also conduct a Special Stockholders’ Meeting to ratify and approve the planned acquisition and capital hike.
Meanwhile Bright Kindle said it has yet to receive the approval of the Securities and Exchange Commissions on the confirmation of valuation for the property for shares swap where BKR’s condominium properties were exchanged for BHDI shares.
Upon receipt of such approval, the company shall implement the declaration of property and cash dividend approved last Sept. 8, 2023. The declaration of property dividend amounts to P5095 million, in order to implement the entitlement ratio of 1 BHDI common share for every three common shares of BKR.