Pepsi-Cola Products Philippines Inc. has initiated a voluntary delisting procedure for its stock with the Philippine Stock Exchange (PSE) as its public float missed the mandatory 10-percent floor.
The company said a tender offer will be made on the remaining 2.1 percent shares held by the public.
The delisting follows the tender offer made by Korea’s Lotte Chilsung Beverage Co. Ltd. to Pepsi shareholders early this year, acquiring 30.7 percent of the Pepsi’s shares of stocks at P1.95 per share.
The local bottler of Pepsi products has a total outstanding shares of stocks of 3.69 billion shares of which only 33.86 million are in the public’s hands. The trading of Pepsi shares remain suspended.
Under the PSE rule on minimum public ownership, the company has until Dec. 18, 2020 to comply with the 10- percent minimum public float requirement or otherwise be subject to involuntary delisting.
“After due evaluation and study of the options available to the company, the Board of Directors approved and authorized the voluntary delisting of the company’s shares from the PSE. Considering the level of its public ownership and the prevailing market conditions, it will not be able to comply with the minimum public ownership requirement by 18 December 2020,” Pepsi said.
Pepsi said it will issue the appropriate disclosure covering the new tender offer. — Ruelle Castro