The consortium of investors eyeing to bring Metro Pacific Investments Corp. private has upped its offer for publicly-owned shares.
First Pacific Company Ltd., GT Capital Holdings Inc., Mitsui & Co. Ltd., and a management investment group (MIG) said they are increasing the offer to P5.20 per share from an earlier price of P4.63. offered on April 26, 2023.
“The improved price represents a premium of 37 percent over the one-year volume weighted average price (VWAP) of P3.80 per share and a premium of 57 centavos over the earlier offer price,” the consortium said.
“If successful, the tender would result in MPIC’s delisting,” it added.
Trading of MPIC shares were suspended for Tuesday.
MPIC also told regulators that its Board of Directors has approved the filing of an application for voluntary delisting subject to compliance with the Philippine Stock Exchange’s delisting rules. The plan for delisting will be presented to shareholders in a meeting on August 8.
“Assuming the shareholders approve the resolution to delist MPIC from the PSE during the special stockholders meeting, the bidders will launch the tender offer immediately thereafter,” MPIC said.
The tender offer period is expected to last 20 business days from the commencement date.
Christopher Young, First Pacific executive director, said the latest offer is “the best and final price the bidders are able to deliver to MPIC’s minority shareholders.”
“Due to the transaction timetable, approvals, and regulatory requirements of the entire process across multiple jurisdictions, there will be no further opportunity to adjust the price,” he added.
GT Capital in a statement said MPIC has historically traded at a discount to the underlying value of its assets with a one-year VWAP of P3.80 per share as of April 26, 2023 reflecting recent market sentiment.
GT Capital said a PSE-accredited independent financial advisor (IFA) appointed by the consortium valued has come up with a valuation range of P3.37 to P5.10 per share for MPIC.
“Following a period of consultation in the wake of the earlier tender offer announcement, the bidders feel that the raised tender offer price provides an improved path to minority shareholders to exit their positions at a sizeable premium to market price,” it said.
