Splash Corp., the personal care products manufacturer of the Hortaleza family, finalized the timetable for the planned delisting of its shares from the Philippine Stock Exchange.
Documents submitted to PSE showed Splash would hold a tender offer for all shares held by the public on July 18 to Sept. 20, 2016.
“From the foregoing, upon the completion of the tender offer, the company respectfully prays that the shares of the company be delisted with the PSE effective Oct. 7, 2016,” Splash said.
Splash said Monday its board unanimously approved the delisting of the company’s shares to avoid telegraphing business plans to competitors.
Other reasons given by the company for arriving at the decision were the low trading volume of the company’s shares over the last two years and the weak response of the investing public to the ongoing share buy-back program.
Splash said it would conduct a tender offer for all 158.449 million publicly-owned common shares, representing 26.66 percent of the corporation’s issued and outstanding common stock, at a price of P3.10 per share. The transaction is worth P491.4 million.
The tender offer price of P3.10 per share was based on the fairness opinion and valuation report conducted by Unicapital Inc.
Unicapital said the shares of Splash could be considered fairly valued within a range of P2.75 to P3.41 per share, based on asset-based approach which entailed the adjustment of the company’s latest set of financial statements, discounted cash flow approach, which established the net present value of the company based on its future earnings and comparable public company approach which attempted to benchmark the value of the company’s shares vis-à-vis its listed counterparts using price earnings and price-to-book.
Splash was incorporated in September 1991 to develop, manufacture bottle, pack and market cosmetics and other beauty products and pharmaceutical products.
It conducted an initial public offering under the ticker symbol ‘SPH’ and successfully raised P1.6 billion from the offer.
Through its diversification effects, the company is also now engaged in packaged and canned food product segments through 100-percent owned subsidiary Splash Foods Corp.