Asiabest opts for 10-day trading halt
Asiabest Group International Inc. is under a 10-session voluntary trading suspension ahead of its plans to infuse real estate and infrastructure-related assets. This, and amid calls from investors to avoid a “false market.”
In a regulatory filing on Tuesday, Asiabest said it had applied for such a suspension from 9 a.m. on Oct. 14 to 9 a.m. on Oct. 28.
The company had unveiled plans to swap the assets of Concrete Stone Corp., Industry Movers Corp. and Kabalayan Housing Corp. (through Premium Lands Corp., or PLC) with up to 600 million new Asiabest shares at P25 each.
Formerly a shell company that attempted to enter the gaming market, Asiabest is now on its way to becoming a real estate and infrastructure-focused firm through the entry of CSC, IMC and Kabalayan.
However, Asiabest said its shareholders had been calling for transparency on its disclosure. They asked why a trading suspension was not implemented when it first announced the planned infusion.
They said this would “allow full, transparent disclosure and proper price discovery.”
As of Tuesday, Asiabest has yet to disclose complete and independent valuation reports and appraisals relating to the three companies’ assets. It assured shareholders that it would focus on completing these requirements within the trading suspension period.
According to the company now led by businessman Francis Lloyd Chua, it had already engaged an independent valuation firm to appraise the real estate assets. This is set to be completed by Oct. 24.
Without this vital information, shareholders said there was a risk of creating a “false market.” This refers to the possible mispricing of Asiabest’s shares, as investors are trading stocks without independent proof that would justify the P25-per-share transaction price.
