FNI shares plunge after Sy’s arrest; company says contingency ready

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 at the close of Tuesday’s trading.

“Most likely the decline in the share price of FNI is related to the arrest of its chairman, Joseph C. Sy, due to alleged immigration violations,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“Most likely sentiment towards the company won’t improve until the issue 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.

However, 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 are confident that this matter will be resolved in accordance with the rule of law. In 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 is ready to comply with national requirements through the divestment of his shareholdings to qualified holders, as well as coordinating with regulatory agencies to meet all legal and administrative obligations.

The company said it will also implement corporate actions to ensure the continuity of leadership and business operations.

“The citizenship case involving Mr. Joseph Sy pertains to him in his personal capacity. FNI, as a corporation, has a separate and independent juridical personality from its shareholders and officers. The company continues to operate in the ordinary 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.