The Wellex Group of the Gatchalian family will conduct a mandatory tender offer to acquire remaining shares it does not own in listed unit Philippine Estates Corp.
Wellex made the move after a recently-concluded rights offering that resulted in an increase in ownership of Wellex and its affiliates in PHES to more than 50 percent.
“Wellex is required to make a tender offer under Sec 19.2.5 of the SRC (Securities Regulation Code) for all the outstanding equity securities to all remaining stockholders of PHES at a price supported by a fairness opinion provided by an independent financial advisor or equivalent third party,” PHES said.
PHES raised as much as P1.44 billion from the rights offering which it will use to fund land acquisitions to support the company’s pipeline projects and for general corporate purposes.
PHES sold 1.44 billion in rights shares during the offering period. The Wellex Group acquired 1.37 million shares in the offering.
PHES had its last capital raising in September 1995 when it was still listed as Philippine Cocoa Estates Corp.
Philippine Stock Exchange president and chief executive Ramon Monzon cited during the listing ceremony that some listed companies that have not had any equity fund raising in a decade or so returned to the stock market this year, including PHES.
“As Philippine Estates continues to expand its property portfolio, there is no question that the funds raised from this SRO will support the company’s initiatives and provide new windows for growth,” Monzon said.
PHES has seven mass housing projects in Cebu and Iloilo and two ongoing developments in Malolos, Bulacan and Mactan, Cebu.
PHES’ first two housing projects prior to developing outside Metro Manila were a 42-storey mixed-use tower in Manila and the 30-hectare Plastics City Industrial Park.
The company plans to expand its footprint in Bulacan and Cavite to take advantage of the improvements in the country’s infrastructure. It also intends to further expand its offerings in Cebu and Iloilo.