Travellers International Group Hotel Inc. of tycoon Andrew Tan began an P8.7-billion tender offer in preparation to delist its shares from the Philippine Stock Exchange on Oct. 15.
TIHGI said in a report filed with the Philippine Stock Exchange the tender offer period is scheduled from Aug. 19 to Sept 23.
TIHGI pegged the tender offer price at P5.50 each, the higher part of the P5.00-to-P5.70 range in the fair value opinion of PricewaterhouseCoopers and local partner Isla Lipana & Co.
PwC-Isla Lipana used three methods in arriving at the fair market value of TIHGI’s shares—discounted cash flow, market approach, and income approach.
DCF, which used a weighted average cost of capital of 12 percent, yielded a fair value within the P5.00-to-P5.80 range.
