By Revin Mikhael D. Ochave, Reporter
SHARES of Global Ferronickel Holdings, Inc. (FNI) fell on Tuesday as investors reacted to the arrest of the mining company’s chairman, Joseph C. Sy, over allegations that he misrepresented his citizenship.
FNI shares sank by 12.14% or 17 centavos to P1.23 apiece on the close of Tuesday’s trading.
“Most probably the decline within the share price of FNI is expounded to the arrest of its chairman, Joseph C. Sy, on account of alleged immigration violations,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.
“Most probably sentiment towards the corporate won’t improve until the difficulty is resolved,” he added.
In separate stock exchange disclosures on Tuesday, FNI said Mr. Sy has been placed under detention by the Bureau of Immigration (BI) over an allegation of being an “overstaying alien.”
Mr. Sy, arrested on Aug. 21, now faces a deportation case for misrepresentation.
Nevertheless, FNI said the charge has “no lawful basis” since Mr. Sy is a Filipino citizen, as affirmed in multiple rulings by various government agencies, including the BI, the Department of Justice, the Office of the President, the Securities and Exchange Commission, and the Supreme Court.
FNI also said that Mr. Sy has formally disputed the BI’s allegation through a motion to dismiss filed with the BI.
“We’re confident that this matter can be resolved in accordance with the rule of law. Within the meantime, we assure all stakeholders that the operations of FNI and its subsidiaries remain stable, unaffected, and fully compliant with all applicable regulations,” FNI said.
FNI also noted that Mr. Sy has never been involved in any criminal activity, describing him as a longstanding, multi-awarded business leader whose initiatives have created livelihood opportunities and socio-economic infrastructure for communities.
Meanwhile, FNI said it has initiated an internal review regarding the matter involving Mr. Sy.
If Mr. Sy is deemed an alien, FNI said it’s able to comply with national requirements through the divestment of his shareholdings to qualified holders, in addition to coordinating with regulatory agencies to satisfy all legal and administrative obligations.
The corporate said it’s going to also implement corporate actions to make sure the continuity of leadership and business operations.
“The citizenship case involving Mr. Joseph Sy pertains to him in his personal capability. FNI, as a company, has a separate and independent juridical personality from its shareholders and officers. The corporate continues to operate within the odd course of business with its full management and organizational complement,” it said.
FNI is engaged in nickel ore mining, logistics, cement and steel production, and port operations.