Tender Offer set for ETON, TOL, FMIC, CMT prior to delisting



Less than two months before the deadline set by the Philippine Stock Exchange (PSE) for publicly traded companies to comply with the minimum public ownership rule, several firms are opting for a delisting instead and are currently in the process of making a tender offer.

A Tender Offer is an invitation to the public, specifically minority shareholders, to surrender or tender their shares to the acquiring entity at a specific price during a specified time.

Several firms, including Eton Properties Philippines (ETON), Metro Pacific Tollways Corporation (TOL), First Metro Investment Corporation (FMIC), and Southeast Asia Cement Holdings (CMT), have recently announced their tender offers in preparation for a delisting of their shares starting January 2013.

PSE’s Public Float Requirement

The move is in response to the requirement set by the PSE for public companies to maintain at least 10% of its shares in the hands of the public. If companies will not comply with the minimum public ownership rule, their shares will face trading suspension during the first half of the year and eventually delisted if not complied with.

As of the end of June 2012, at least 27 publicly-traded firms have public ownership percentages below 10%. These companies can be found in this list: PSE to delist 27 firms if public float rule not met

As per the PSE rules, companies that will opt to voluntarily delist must make a public tender offer to minority shareholders and must acquire at least 95% of its total outstanding stock.

ETON Tender Offer

Eton Properties Philippines (ETON), the property arm of the Lucio Tan conglomerate, has recently announced it will voluntarily delist from the bourse and, in turn, will make a tender offer to acquire 73.8 million shares comprising 2.54% of the company’s total shares. As of end-June 2012, ETON’s public float level stood at 5.65%. The company’s tender offer price is P3.00 per share. The offer will end on December 5. ETON’s last traded price as of November 9 was P2.92.

TOL Tender Offer

The Manny Pangilinan-led company involved in developing toll roads, Metro Pacific Tollways Corp. (TOL), also recently made a tender offer to acquire all remaining shares from the public at an offer price of P6.50 per share. The company’s current public ownership percentage is only 0.15%. The tender offer will run until November 22 and the company will voluntarily delist its shares starting December 21. As of November 9 last week, TOL’s shares traded at P6.25 apiece.

FMIC Tender Offer

First Metro Investment Corp. (FMIC), the investment banking unit of Metrobank, also decided to voluntarily delist from the PSE and is in the process of acquiring the remaining 1.94% shares that are owned by minority shareholders. The tender offer runs until November 29 and the offer price is P89.00 per share. As of the last trading day last week, FMIC’s shares closed at P87.10.

CMT Tender Offer

Cement maker Southeast Asia Cement Holdings (CMT) is also making a tender offer in the form of shares conversion in order to lift the public float level of its parent company Lafarge Republic Inc. (LRI), whose public ownership percentage currently stands at 3.67%. CMT is offering its shareholders a conversion ratio of 1 LRI share for every 3.73 shares owned. This will ultimately bring LRI’s public float level to above 10%, while bringing down CMT’s public ownership at less than 1%, qualifying it for delisting. The tender offer ends on November 14. As of the closing trading day last week, LRI shares traded at P9.65 apiece while CMT shares closed at P2.39.

You must also read these articles:

About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

3 thoughts on “Tender Offer set for ETON, TOL, FMIC, CMT prior to delisting”

  1. My exceptional instructed us to search for website pages that discuss armer26p after i unintentionally uncovered your internet site and endure ALIEN SPACESHIPS TO Assault EARTH IN NOVEMBER 2012!. I am truly impressed with your extraordinary put up!

    Reply

Leave a Comment