Tiu family’s TKC Metals may face delisting
Listed steel firm TKC Metals Corp. received a notice from the Philippine Stock Exchange that it could be delisted for incurring negative stockholders equity.
Based on PSE’s review of TKC’s financial statements, the Tiu-led firm has a negative stockholders equity of P899.72 million and P574.78 million as of Dec.31, 2017 and March 31 this year.
TKC, however, is asking PSE for leeway to turn its operations profitable again given improving metals market worldwide.
The company cited Sec. 5 of the PSE rules which provides that a listed company shall be subject to delisting if it incurs negative stockholders equity for three consecutive years.
So far, TKC posted negative stockholders’ equity balance only for 2016 and 2017.
“Management is hopeful with its plan of equity restructuring, the diversification into nickel concentrate and the continuing improvement of metals market overseas,m TKC will be able to recover and bring its stockholders’ equity back to positive,” said TKC.
Through its two subsidiaries, TKC manufactures steel pipes and steel billets, which in turn become the raw materials of downstream steel products such as bars, wire rods and sections.