A unit of conglomerate San Miguel Corp. (SMC) on Monday has started the tender offer for the shares held by minority owners of Eagle Cement Corp. (ECC).
In its disclosure, San Miguel advised regulators that San Miguel Equity Investments Inc. (SMEII) has launched its tender offer for the 11.5 percent stake of the minority owners of Eagle Cement. The tender offer period will run until December 5 and will be crossed through the Philippine Stock Exchange on December 14.
San Miguel is already acquiring the 88.5 percent of Eagle Cement for P97.32 billion.
The transaction involves the purchase of a total of 4.42 billion common shares, for P22.02 per share, of the total outstanding and issued capital stock of Eagle Cement by SMEII.
The acquired shares will come from the Ang family, including those from Far East Holdings Inc. and the company’s president and CEO Ramon S. Ang, Eagle Cement’s president John Paul L. Ang and his sister Monica L. Ang, who is also Eagle’s CFO.
“The acquisition of ECC offers a complementary approach to the current investment strategy of SMC in the cement industry, will increase its foothold in the cement business and provide the opportunity to implement its plan to expand its cement business,” San Miguel said in its previous disclosure.
“The transaction shall be by way of acquisition by the purchaser of the sale shares from the selling shareholders. The closing of the transaction is subject to the approval by the Philippine Competition Commission.”
Ramon Ang is also San Miguel’s president and CEO, while son John Paul is also a director at the conglomerate. The company said the two did not participate in the approval of the board of the said acquisition.
“The consideration was the result of negotiations between the purchaser and the sellers, and the basis for the negotiation and determination of the sale price was the valuation undertaken by an independent firm using global valuation standards,” San Miguel said.
Eagle’s main products are cement bags and in bulk sold under its own brands. It owns a cement production facility located in Barangay Akle in San Ildefonso, Bulacan and a grinding and packaging facility in Limay, Bataan. The company currently distributes its products only in the Luzon region through its distribution centers in Metro Manila, Region 4-A and Region I.
It currently has three subsidiaries—South Western Cement Corp., KB Space Holdings Inc. and Solid North Mineral Corp.