Don’t confuse BHI with BH and vice versa

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EMETERIO SD. PEREZ

BOULEVARD Holdings Inc. and BHI Holdings Inc. are two listed companies not related to each other. Their public stockholders should be able to distinguish them by their market symbols: BHI is for Boulevard Holdings Inc. while BH is for BHI Holdings Inc.

If public investors are confused by these acronyms, they are advised to access www.edge.pse.com.ph. Surfing outside this website would yield only Boulevard Holdings Inc.

By typing BH on the designated place on the website of the Philippine Stock Exchange (PSE), the public would find both BHI Holdings Inc. and Boulevard Holdings Inc.

If not satisfied with the results, the public should read the public ownership report (POR) of BHI Holdings. The capital letters stand for Bulk Handlers Inc., which is the company’s majority stockholder.

As of Oct. 4, Bulk Handlers, which is not a PSE-listed company, owned 449,424 BH common shares, or 89.887 percent of 499,987 outstanding common shares with a par value of P100 apiece.

BH common shares were last traded at P1,011 on Aug. 15, in fact the stock traded at that level during the whole session that day. The stock hit a 52-week high of P1,200 and dropped to a year-low of P1,000.

No principal stockholder
Unlike BHI Holdings, Boulevard Holdings does not have a principal stockholder. It leaves the space reserved for it in its public ownership report (POR) blank.

Instead, it placed PCD Nominee Corp. at the top of its top 100 stockholders. As of Sept. 30, PCD Nominee held 9,288,807,911 BHI common shares, or 77.407 percent, for Filipinos, and 488,788,310 BHI common shares, or 4.073 percent, for foreigners.

PCD Nominee acts only as the record stockholder for the actual or beneficial stockholders. Its “majority ownership” does not make it the parent company of Boulevard Holdings.

As of the same cut-off date, JP Guilds Inc. held fully paid 1,032,233,333 BHI common shares, and “partially paid” 1,136,106,443 BHI common shares, for a total of 2,168,339,776 BHI common shares, or 18.069 percent. The company did not report how much JP Guilds paid for the “partially paid” BHI common shares.

In its POR as of Oct. 10, Boulevard Holdings listed nine directors as holders of 5,316,716,787 BHI common shares, or 44.306 percent. Of their holdings, the company’s POR classified 5,243,084,776, or 43.692 percent, as indirectly owned by the individual directors.

Surprisingly, Boulevard Holdings did not name the company that held 5,243,084,776 BHI common shares for the members of its nine-person board. Perhaps, it wanted the public to engage in a guessing game.

On Oct. 27, BHI common shares opened trading and peaked at P0.070 and closed trading at its session-low of P0.069. The stock hit a year-high of P0.099 and a 52-week low of P0.060.

Due Diligencer’s take
The confusion arising from the use of market symbols may not be intentional. It is up to the public to distinguish one from the other.

Remembering market symbols should be easy, such as BHI for Boulevard Holdings Inc. and BH for BHI Holdings Inc.

Unfortunately, the public stockholders of BHI Holdings have to contend with the company’s use of BHI in its corporate identity. The acronym stands for Bulk Handlers Inc., which is its owner.

Public investors may even be in for a bigger surprise: BHI listed in its POR 5,319,466,787 BHI common shares, or 44.329 percent, as the “total number of non-public shares,” leaving the public with 6,680,533,213 BHI common shares, or 55.671 percent, as the “total number owned by the public.”

As BHI’s majority stockholders, the company’s public stockholders don’t even have a seat on the board.

Meanwhile, BHI Holdings’ POR showed its public stockholders as owners of 50,079 BH common shares, or 10.016 percent. Its non-public shares totaling 449,908 BH common shares, were equivalent to 89.984 percent.

If that’s the case, and public investors are really significant stockholders of these two listed companies, aren’t they entitled to nominate their own nominees to the board of directors? Just asking.

esdperez@gmail.com





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