Energy Development Corp., the biggest steam energy producer, successfully concluded a tender offer to shareholders that will pave the way for the voluntary delisting of the company’s shares in the stock market.
“All shareholders who tendered their shares crossed (Monday) via block sale. This is in effect the conclusion of the tender offer (settlement) which is a needed to effect the voluntary delisting of EDC,” EDC vice president for corporate finance Erwin Avante said Tuesday when asked for comment.
The tender offer started on September 24, 2018 and ended on October 22, 2018.
EDC disclosed to the Philippine Stock Exchange that following the close of the tender offer period, over 2 billion common shares, representing approximately 10.72 percent of the company’s outstanding voting shares, were crossed through a block sale on November 5. The shares were purchased at the tender offer price of P7.25 for a total of P14.57 billion
“The PSE will have to approve the eventual delisting of EDC from the exchange,” Avante said.
EDC previously earlier the tender offer would reduce the percentage of shares held by the public to less than 5 percent from 10.9 percent and prompt a voluntary delisting of the company, subject to PSE approval.
The board of EDC approved the company’s plan to voluntarily delist its common shares from the PSE as public ownership was expected to fall below five percent after the tender offer.
The voluntary delisting, which will provide greater corporate flexibility, is in line with the PSE’s delisting regulations.
“The intention to eventually delist EDC was shared with the market last year and the tender offer that our board has approved today presents a meaningful opportunity for our minority shareholders to realize their investment prior to the delisting of the company, at a significant premium to the current share price,” EDC president and chief operating officer Richard Tantoco said earlier.
Philippines Renewable Energy Holdings Corp. in September last year completed a voluntary tender offer to acquire 8.9 billion common shares of EDC.