Investing word of the day: Back door listing

source: http://dequitypartners.com.au

This word probably became popular due to the East Asia Power Resources(PWR) price uptrend caused by the takeover of Century Properties Inc.

source: http://www.century-properties.com/

Here is what Investopedia says:

A strategy of going public used by a company that fails to meet the criteria for listing on a stock exchange. To get onto the exchange, the company desiring to go public acquires an already listed company.

Century Property might have opted to be listed in the Philippine Stock Exchange and sees East Asia Power Resources as good way to be listed by Backdoor listing below is an excerpt from a disclosure submitted by PWR to the Exchange regarding the purchase of Century of PWR making it a wholly owned subsidiary.  

Century Properties, Inc, (CPI) has commenced a negotiated purchase thru a Deed of Assignment of Shares of Stocks dated 31 May 2011 with El Paso Phil. Energy, Inc, for the following acquisitions.
1. 67,096,092 common shares of East Asia Power Resources Corp (PWR) equivalent to 1.888% of PWR
2. 284,250,000 common and preferred shares of EPHE Phils. Energy Co. Inc. (EPHE) resulting to an indirect acquisition of equivalent to 91.695% of the total issued and outstanding capital stock of PWR.

In another disclosure, during the special meeting of the Board of the Corporation, East Asia Power Resources Corp, held today,July 11 2011, the incumbent directors of PWR successively tendered their resignations and in their place, the following were elected as directors to fill in the vacancies and serve the unexpired term of their predecessors for the incumbent year.(click here to read more)