PAL Holdings, the parent company of Philippine Airlines, has been granted an extension to meet new requirements of the Philippine Stock Exchange (PSE) that could otherwise have seen the company delisted.
In a disclosure statement to the stock exchange, the company says that it has been granted an extension to 31 July to meet the minimum public ownership requirement of the exchange.
Under listing rules introduced this year, a company listed on the PSE is required to have at least 10% of shares publicly tradeable. Companies that do not comply by 1 July face delisting.
To meet the requirement, PAL had applied to authorities to increase its authorised capital stock from Philippine peso (Ps)23 billion ($534 million) to p30 billion. It disclosed in late June that an additional 2.41 billion shares had been subscribed to by "certain investors via private placement transaction."
As of end May, 99.5% of PAL Holdings' shares were held by Trustmark Holdings, which is a 51:49 joint venture between Lucio Tan Group and conglomerate San Miguel Holdings.
In early June, PAL said that LT Group had received an approach from investors to acquire its 51% stake in the airline. San Miguel later clarified that it was not the party that made the approach.
PAL Holdings recorded a net loss of Ps 2.62 billion for the quarter ended 31 December 2012.