Aranetas suffer setback as SEC nixes LBC share sale on non-disclosure of criminal case
The Securities and exchange Commission has thumbed down the planned P1.2 billion follow-on offering of leading logistics firm LBC Express Holdings Inc. for failure to disclose legal procedings involving its major shareholders.
In particular, the SEC said LBC failed to include in its registration statement the cases filed by the Bangko Sentral ng Pilipinas and Philippine Deposit Insurance Corp. (PDIC) against the Araneta family on behalf of defunct LBC Development Bank.
“LBC willfully omitted the details of the pending criminal and administrative cases such as Estafa and Conducting Business in an Unsafe and Unsound Manner filed by PDIC and BSP against members of the Araneta family, among others,” the SEC said.
“Based on records, the Aranetas are the control persons of LBC through LBC Development Corporation which is wholly owned by the Aranetas. The significance of the subject cases necessitates a full and fair disclosure, which LBC failed to do,” it added.
LBC in October sought regulatory approval to sell 69.1 million shares at a maximum price of P17 per share to boost funds for its expansion.