FIRST PHILIPPINE Holdings Corp. (FPH) changed its bid to purchase common stock of Lopez Holdings Corp. by limiting the amount of shares it plans to buy, the firm reported in its regulatory filing on Wednesday.
FPH announced that its amended tender offer would cover up to a limit of 1,57 billion common shares, equal to 34.5 per cent of the existing issued and outstanding common shares.
The numbers reflect a revision of its previous intention to buy at least 20 per cent or 908.46 million common shares and up to a limit of 45.56 per cent or 2.07 billion common shares of the total issued and outstanding common shares of Lopez Holdings, the parent company of FPH.
The stock would be bought by the owners of Lopez Holdings at P3.85 per common share. However, the intention would not include the stock held by Lopez, Inc., who decided not to offer their common shares.
“The decrease would remove the possibility of [Lopez Holdings] slipping below the minimum public ownership threshold and eliminate the need to seek its proposal for voluntary delisting,” said the disclosure.
FPH President and Chief Executive Officer Francis Giles B. Puno said that the organization wished to eliminate the pressure that a number of Lopez Holdings shareholders might have faced as a consequence of its decision to delist.
He added that the company needed the sector to determine if investors would want to take advantage of the tender shares.
“It must be stressed that the tender bid price is at a substantial market price premium right before the tender has been announced and is also at a higher rate of valuation given by the independent financial analyst, KPMG, as accredited by the exchange,” Mr. Puno said.
FPH reported that its tender offer price of P3.85 was 25 percent higher than the closing share price of Lopez Holdings on 27 November last year, at P3.08, and that it was 41 percent, 43 percent and 36 percent higher than its three-month, six-month and 12-month volume weighted average prices at P2.74, P2.69 and P2.82, respectively.
The firm noted that its tender offer price was also 22 percent higher than Lopez Holdings’ six-month closing price of P3.15 as of 27 November 2020.
“The term of the tender offer is expected to continue to begin on 22 January 2021 and to conclude on 19 February 2021, subject to an extension as circumstances might require,” said the disclosure.
Lopez Holdings reported in December last year that it had filed 4,63 billion shares of the Philippine Stock Exchange on a voluntary basis.
Lopez Holdings is the holding company of the Lopez family for investment in significant construction sectors. FPH is the parent energy investment company of the family.