Mass housing developer 8990 Holdings Inc. moved to voluntarily delist from the Philippine Stock Exchange (PSE) after nearly 15 years as a public company.
The company said its parent, 8990 Housing Development Corp. (8990 HDC), would launch a tender offer for all publicly-held shares at P10.42 per share. This represents a 13.2-percent premium from its closing price of P9.20 on Wednesday.
“Upon extensive deliberations by the Board of Directors of the company, the board has approved the voluntary delisting of the Company from the PSE,” 8990 Holdings said in a statement.
“The board noted that the voluntary delisting of the company would unlock the intrinsic value of the company’s business and assets, which does not seem to be fully appreciated by the market, based on the historical trading price of the company’s shares on the PSE,” it said.
The tender offer will cover all outstanding common shares not owned by the company’s majority shareholders: Iholdings Inc., Kwantlen Development Corp., Mariano Martinez and Luis Yu Jr.
The delisting is subject to several conditions, including approval from the company’s stockholders and completion of the tender offer by 8990 HDC, among others.
Following the announcement, the PSE suspended trading of 8990 Holdings shares.
The tender offer and potential delisting come amid a growing trend of publicly listed firms in the Philippines opting to go private, citing strategic and financial considerations.
Companies that have voluntarily delisted their shares from the PSE include SFA Semicon Philippines Corp. (SSP), Premium Leisure Corp., Keppel Philippines Holdings Inc., Holcim Philippines Inc. and Metro Pacific Investments Corp.
