Lopez Holdings Corp. (LPZ) said it may no longer delist its shares from the Philippine Stock Exchange (PSE) after its unit announced that its purchases will allow LPZ to meet the required minimum public ownership.
In its disclosure, Lopez Holdings said First Philippine Holdings Corp., which holds the family’s property and energy businesses, will only buy up to 34.5 percent of the total issued and outstanding common shares of LPZ.
“The reduction will remove the risk of the company falling below the required minimum public ownership and dispense with the need for the company to pursue its petition for voluntary delisting of its 4.63 billion common shares from the main board of the Philippine Stock Exchange filed on December 14, 2020,” the companies said.
First Holdings originally intended to buy at least 20 percent and up to 45.56 percent of Lopez Holdings. These shares will be acquired from the rest of the shareholders of the company. Shares of Lopez Inc., the ultimate parent of the two firms and owns more than half of Lopez Holdings, meanwhile, are not included in the deal.
If First Holdings will purchase 45.56 percent of Lopez Holdings, it will fall below the minimum 10 percent public float requirement of the PSE. The regulator may then delist them or Lopez itself will have to voluntarily leave the exchange.
First Holdings earlier said it will buy the said Lopez Holdings shares at P3.85 apiece or a 25-percent premium over LPZ’s closing share price of P3.08 on November 27, and a 41-percent, 43-percent and 36-percent premium over its 3-month, 6-month and 12-month volume weighted average price of P2.74, P2.69 and P2.82, respectively.
Lopez Holdings earlier approved the engagement of independent financial adviser KPMG/R.G. Manabat and Co., which provided a fairness opinion on First Holdings’ tender offer price.
The company owns ABS-CBN Corp., which holds its broadcast and telecom assets, and First Holdings.
The Lopez family earlier decided to delist Energy Development Corp. from the PSE.
First Holdings share price closed on Wednesday at P79.50 apiece, while Lopez shares were last traded at P3.70 apiece.
Image credits: Nonie Reyes