Filinvest Land Inc. (FLI) said its has collected its target of 1.87 billion company shares for a planned swap with Filinvest REIT Corp. (FILRT) shares.
The realtor’s tendered shares for the swap reached 2.3x of the target shares which it said highlights the market’s “strong reception” to the initiative.
“The tender offer agent received applications totaling 4.24 billion FLI common shares, equivalent to 17.47 percent of FLI’s issued and outstanding stock. As a result, the entire 1.87 billion-FLI common share cap of the tender offer was fulfilled, in exchange for 597.12 million Filinvest REIT common shares, or 12.20 percent of issued and outstanding stock,” the company said.
This received “significant support from” major institutional FLI shareholders as well as numerous minority shareholders, it added.
FLI gives shareholders 3.11 FILRT shares for every 1 FLI share it tendered.
The company said FILRT’s public float is now at 46.68 percent, up from 34.38 percent.
“With the expansion in public ownership, FLI also creates room to infuse assets into FILRT while remaining compliant to be a publicly listed company, retaining 26.44 percent public ownership in FLI after the tender offer,” FLI said.
The Philippine Stock Exchange requires a minimum public float of 10 percent for listed companies.
FLI said the transaction gave FLI shareholders a “compelling opportunity” to participate in REITs, gaining exposure to a portfolio of income-generating properties.
As of end-September, FILRT’s portfolio includes over 330,000 square meters of gross leasable area of offices and land leased by a hotel, with potential for capital appreciation. BPI Capital Corp. served as the tender offer coordinator, with BPI Securities Corp. acting as the tender offer agent. Angara Abello Concepcion Regala & Cruz Law served as the Filinvest Group’s legal adviser for the transaction.
