SCUTTLEBUTT

Keppel latest to exit bourse

Traders have noted an increasing delisting trend in the stock exchange, the latest of which were investment holdings and property developer Keppel Philippines Holdings Inc. (KPHI) and SFA Semicon Philippines Corp. (SSP).

The trend reflects broader challenges in the stock market, including low liquidity and concerns about valuation.

In 2023, voluntary delistings surpassed initial public offerings (IPOs) as four major companies — Holcim Philippines, Metro Pacific Investments Corp. (MPIC), 2GO Group Inc. and Eagle Cement — delisted; while three firms —Alternergy Holdings Corp., Upson International Corp. and Repower Energy Development Corp. — went public.

SFA Semicon delisted on 12 December 2024 following a tender offer by its South Korea-based parent, SFA Semicon Co. Ltd., which acquired 9.43 percent of SSP’s shares at P2.22 per share.

KPHI’s planned delisting on 24 June 2025 is driven by its majority shareholder, Kepwealth Inc., aiming to consolidate ownership at a tender offer price of P27.40 per share.

KPHI and MPIC said their share prices did not reflect their intrinsic value. MPIC said in a 2023 press release that its core infrastructure investments were undervalued.

Similarly, KPHI’s board believes its shares are undervalued, a sentiment echoed by analysts like AP Securities.

Public companies face significant regulatory and compliance costs, including listing fees, disclosure requirements, and adherence to governance standards. Delisting can save millions, particularly for firms with low market capitalization or trading volume.

KPHI’s low trading volume and high compliance costs likely contributed to its decision to delist, as going private reduces these burdens and aligns with Kepwealth’s strategic goals. TDT

Generational shift at OPMC

The recent leadership transition at Oriental Petroleum and Minerals Corp. (OPMC) marks a significant shift in the company’s executive structure with Benedicto T. Coyiuto appointed president and chief operating officer replacing his father, Robert Coyiuto Jr., who has transitioned to the role of vice chairman.

The change, reported during OPMC’s annual stockholders meeting, reflects a generational succession within the Coyiuto family which, alongside the Gokongwei group, co-owns the company engaged in oil and gas exploration in the Philippines. Below is a detailed analysis of this development, drawing on available information and contextual insights.

Benedicto, aged 46, has been a director at OPMC since 2013, bringing over a decade of experience on the company’s board. He also holds prominent roles outside OPMC, including president of PGA Cars Inc. and director at PGA Sompo Japan Insurance. His appointment as president and COO positions him to lead OPMC’s operational and strategic initiatives, leveraging his extensive business experience in the automotive and insurance sectors, which will be beneficial to the company’s oil and gas exploration efforts.

Robert Coyiuto Jr., as vice chairman, assumes a more strategic and oversight-focused role, enabling him to continue influencing OPMC’s direction while passing operational leadership to his son. He has a net worth of about $1.3 billion derived from stakes in OPMC, National Grid Corporation of the Philippines, and Prudential Guarantee and Assurance, among other firms. He is also chairman and CEO of PGA Cars, the sole distributor of luxury car brands like Porsche, Audi, Lamborghini, and Bentley in the Philippines.