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MANILA - Megawide Construction Corp. has obtained the approval of the local bourse to suspend trading of its shares after the company bared plans of its two founders and their respective families to consolidate their holdings under one entity.
In a memorandum, the Philippine Stock Exchange said it will implement a trading suspension of Megawide shares after the execution of the block sale on Friday "so as not the unduly affect market activity and maintain price stability."
The suspension will be lifted on Monday.
In a disclosure, Megawide said the company's founders, Michael Cosiquien and Edgar Saavedra, as well as their respective families, will transfer their collective holdings equivalent to 61.8 percent of the construction firm to Citicore Holdings Investment Inc.
Cosiquien is chairman and chief executive of Megawide, while Saavedra is the company's president and chief operating officer, with their ownership pegged at 25.54 percent and 26.31 percent, respectively.
Yerik Cosiquien, Irving Cosiquien, and Floria Saavedra each own 3.26 percent of the company, while Elsie Saavedra has a 0.16 percent stake.
"Hence, the majority shareholders, more particularly the controlling shareholders, Michael Cosiquien and Edgar Saavedra, will now indirectly own Megawide shares through Citicore, in the same proportion as previously held by them as individual shareholders of Megawide," the company said.
The six stockholders hold 99.50 percent of Citicore with Megawide chief financial officer Oliver Tan owning 0.16 percent.
Megawide said the planned transfer of its shares will not result in a transfer of control since Citicore is also beneficially owned and controlled by the same set of stockholders.
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