The Securities and Exchange Commission extended the tender offer period of geothermal power producer Energy Development Corp. by another 20 days.
EDC said in a disclosure to the stock exchange Monday that it received a letter from the SEC dated Sept. 11 approving the company’s request for exemption relief from complying with the 60-business day rule.
EDC said the SEC allowed the company to extend the tender offer period for an additional 20 business days from Oct. 22, 2018, if an extension would be necessary or desirable in order to complete the tender offer.
The tender offer period is targeted to commence from Sept. 25 to Oct. 22 and is subject to a minimum of 1.162 billion common shares being tendered and eligible for acceptance by EDC through the tender offer.
The tender offer will reduce the percentage of shares held by the public to less than 5 percent from 10.9 percent and in turn, allow a voluntary delisting of the company, subject to PSE approval.
The SEC said that “under this situation, extending the tender offer period is for the benefit of the company’s shareholders.”
“Thus granting the extension request is consistent with public interest and protection of investors,” EDC said.
The board of EDC approved last month the company’s plan to voluntarily delist its common shares from the PSE, as public ownership was expected to fall below 5 percent after the scheduled tender offer.
The voluntary delisting, which will provide greater corporate flexibility, is in accordance with the PSE’s delisting regulations, to conduct a tender offer for all of its common shares held by the public at a price of P7.25 per common share.
“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.
Upon the completion of the tender offer and subject to the approval of the voluntary delisting, EDC is expected to be delisted from the PSE.
