CURRENT and former government officials of Cebu City and Cebu province, businessmen and a Cebu cooperative are among the top stockholders of the Cebu Property Ventures and Development Corp. (CPVDC), the firm’s disclosure at the Philippine Stock Exchange (PSE) revealed.
In a PSE disclosure dated Oct. 14, 2016, it is shown that former Cebu governor and now Deputy House Speaker Gwendolyn Garcia as well as Cebu City Councilor Margarita Osmeña have a stake in the company.
“Anyone can buy shares of stock of a publicly-listed company,” lawyer Jeanette Japzon, Cebu Holdings, Inc. (CHI) corporate communications manager, told Cebu Daily News in a phone interview last Tuesday.
The company began as a joint venture corporation between the Cebu provincial government and Ayala Land, Inc., and following a successful tender offering undertaken in 1995, CPVDC is now 76.26 percent owned by CHI.
Japzon said the CPVDC was particularly interesting when it was listed because it was the first Cebu-based company that issued an Initial Public Offering (IPO).
Asked whether Garcia’s and Osmeña’s shares in the company would pose a conflict in interest considering they are elected government officials, Japzon said that they have minimal ownership and no participation in management.
CPVDC is the owner and developer of Cebu IT Park, a 27-hectare prime property in Barangay Apas which used to be the Lahug Airport.
According to the disclosure, Garcia holds 0.03 percent ownership of CPVDC with 320,000 Class A shares while Osmeña holds 0.01 percent ownership of the firm with 60,000 Class A shares, which are also listed under her son Ramon Miguel’s name.
Former Cebu City mayor Alvin Garcia also has a 0.01 percent stake on the company with 130,000 Class A shares.
Cebu CFI Community Cooperative, which was founded by the late judge and Garcia matriarch Esperanza Garcia, also purchased Class A shares of 100,000.
Other notable stockholders from Cebu City include Douglas Luym, president of Ludo & Luym Corporation, who holds 500,000 Class A shares reflecting 0.05 percent ownership of CPVDC.
Class A shares are defined as the type of common stock accompanied by more voting rights than Class B shares, usually given to a company’s management team.
Stockholders with these types of shares are usually entitled to enhance benefits.
Aside from increased voting rights, they also get dividend priority and liquidation preferences, meaning those who own Class A shares of a firm are paid first upon distribution of dividends and are also paid first in case of an exit.