The trading of shares of mining companies Lepanto Consolidated Mining Company (LC / LCB), Philex Mining Corporation (PX), and Manila Mining Corporation (MA / MAB) were suspended today, following a voluntary trading suspension request from the said mining firms.
In a disclosure submitted to the Philippine Stock Exchange (PSE) on May 11, the three companies separately requested that the trading of their shares be suspended. Interestingly, though, the letters contain exactly the same phrasing.
Their individual letters state that Lepanto, Philex and Manila Mining “intend to make a material disclosure within the next two days and request that trading of shares be suspended immediately, to be resumed after [the company] shall have made the disclosure.”
Rumors abound that the disclosure is related to a possible merger between or among the mining firms, something that can cause a further rise in stock prices. Rumors have it that Philex CEO Manny Pangilinan (MVP) is looking to acquire Lepanto or Manila Mining, which recently caused double-digit increases in the prices of those stocks in the past week.
At the same time, there are rumors that the merger is already a done deal but the acquisition price is lower than the current market price, which could spark a round of sell-offs.
Some are saying it’s not going to be a merger but instead a mere joint venture in the development of mining projects.
What exactly is the disclosure? Is it going to be good or bad news? You tell us. Vote in the poll below!
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Stock Price Notes:
- LEPANTO CONSOLIDATED MINING COMPANY “A” (LC) closed at P0.82 on May 10, up 67% since April 1
- LEPANTO CONSOLIDATED MINING COMPANY “B” (LCB) closed at P0.94 on May 10, up 81% since April 1
- PHILEX MINING CORPORATION (PX) closed at P18.52 on May 10, up 24% since April 1
- MANILA MINING CORPORATION “A” (MA) closed at P0.047 on May 10, up 47% since April 1
- MANILA MINING CORPORATION “B” (MAB) closed at P0.047 on May 10, up 42% since April 1
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