Lopez Holdings to delist from PSE

Lopez Holdings Corp. announced on Tuesday that it would delist from the Philippine Stock Exchange (PSE) in an effort to strengthen its ownership and simplify its corporate structure.

In a filing, the Lopez-led conglomerate said its board had authorized the company’s move to voluntarily delist from the bourse’s main board.

It also said First Philippine Holdings Corp. (FPH) offered to acquire 20 percent to 45.56 percent of the company’s total issued and outstanding common shares from all shareholders at P3.85 each.

Shares owned by parent Lopez Inc. are excluded.

FPH is a member of the Lopez Group of Companies and a sister company of ABS-CBN Corp. FPH subsidiaries include First Gen Corp., Energy Development Corp. and Rockwell Land Corp.

“It is always a good sign when you see an offer for your shares with a significant premium over the market price. We will be happy for the shareholders who decide to avail [themselves] of this opportunity to liquidate their investment,” Lopez Holdings President, Chief Operating Officer and Chief Finance Officer Salvador Tirona was quoted as saying in the filing.

If FPH’s tender offer is successful, Lopez Holdings would be delisted to consolidate its ownership and streamline its corporate structure by reducing the number of group holding companies listed on the exchange from two to one.

The offer price represents a 25-percent premium over the firm’s closing share price of P3.08 on Friday.

It also represents a 41-percent, 43-percent and 36-percent premium over Lopez Holdings’ three-month, six-month and 12-month volume weighted average price of P2.74, P2.69 and P2.82, respectively; and a 22-percent premium over the company’s six-month closing high of P3.15 as of November 27.

“The board of directors of Lopez Holdings has approved the engagement of an independent financial advisor to provide a fairness opinion on FPH’s tender offer price,” the company said.

Trading of Lopez Holdings shares was suspended on Tuesday. It is expected to resumed today at 9 a.m.