Politics

San Miguel unit starts tender offer for minority shares in Eagle Cement

1 Mins read

A UNIT of San Miguel Corp. (SMC) started on Monday the mandatory tender offer to the minority shareholders of Eagle Cement Corp. after it agreed to acquire the stake held by the latter’s main owners.

In a disclosure to the Philippine Stock Exchange (PSE), SMC said that San Miguel Equity Investments, Inc. (SMEII) filed with the Securities and Exchange Commission (SEC) its tender offer report or SEC form 19-1.

The tender offer for 11.5% of Eagle Cement’s shares will start on Nov. 7 and will end on Dec. 5.

In compliance with the Securities and Regulation Code, SMEII is required to conduct a tender offer to acquire a total of 574.88 million shares of Eagle Cement.

The tender offer price is P22.02 per common share, which is higher than the volume-weighted average price of Eagle Cement for one year preceding the date of the disclosure.

On Oct. 5, majority shareholders of Eagle Cement signed a share purchase agreement with SMEII for the sale of 88.5% or 4.425 billion of its shares. The shares were priced at P22.02 apiece for a total of about P97.44 billion.

“Subject to the approval of the PSE, SMEII intends to proceed to voluntarily delist Eagle Cement from the main board of the PSE after the completion of the tender offer,” the company said.

If realized, the deal will result in the consolidation of two companies led by Ramon S. Ang and will increase the total cement production capacity of SMEII by 8.6 million metric tons per annum.

On Monday, shares in SMC climbed by 10 centavos or 0.1% to P99.10 apiece, while shares in Eagle Cement closed 40 centavos or 1.9% higher to P21.50 each. — Justine Irish DP. Tabile