The Securities and Exchange Commission nullified and declared as illegal the takeover of The Medical City by a group of investors led by Jose Xavier Gonzales.
It affirmed the resolution issued by a special hearing panel penalizing Viva Holdings, Viva Healthcare Limited, Fountel Corp and Felicitas Antoinette Inc. for violating the mandatory tender offer rules and committing fraud in taking over Professional Services Inc., which operates The Medical City.
The SEC, however, modified the resolution to declare null and void with immediate effect all share acquisitions made by Viva Holdings, Viva Healthcare, Fountel and FAI in PSI beginning Aug. 1, 2013.
The corresponding increases in the authorized capital stock of PSI, however, remain valid. The shares will be considered as unsubscribed and allocated for subscription by investors.
Shares acquired from other shareholders, namely Splash Corp., San Miguel Corp. and Insular Life Assurance Co. Ltd. will be canceled and revert to PSI as treasury shares, which may be sold to other persons. Once the shares are sold and paid for, PSI will reimburse Viva Holdings, Fountel and FAI for the subscriptions that were nullified.