Conglomerate San Miguel Corp. said Monday it started the P12.6-billion tender offer to acquire public shares in Eagle Cement Corp.
San Miguel said in a disclosure to the stock exchange said would acquire 574,877,004 common shares of Eagle Cement held by minority investors at P22.02 apiece. The tender offer will be from Nov. 7 to Dec. 5.
Tendered shares will be settled and crossed on the Philippine Stock Exchange on Dec. 14.
San Miguel said that after the tender offer, it would proceed with the delisting of Eagle Cement from the main board of the local bourse.
San Miguel finalized the timetable for the tender after the Philippine Competition Commission, the government’s anti-trust body, ruled that San Miguel’s P97-billion takeover of Eagle Cement is not subject for review.
Under the Securities Regulation Code, a mandatory tender offer is triggered when a company acquires over 50 percent of the total outstanding equity securities of a publicly-listed firm.
San Miguel disclosed early this month plans to acquire a controlling 88.5-percent interest in Eagle Cement to strengthen its foothold in the cement business.
The family of San Miguel president and chief executive Ramon Ang owns Eagle Cement.
Under the plan, San Miguel will acquire 4.425 billion Eagle Cement shares owned by Far East Hldings Inc., Ramon Ang, Paul Ang and Monica Ang-Mercado at P22.02 apiece.
San Miguel owns North Cement Corp. which operates a cement plant in Sison, Pangasinan. It also owns Southern Concrete Industries Corp., formerly Oro Cemento Industries Corp., which has a production plant in Davao.
Eagle Cement operates a cement facility in San IIdefonso, Bulacan, which has an annual production capacity of 8.6 million metric tons.
The share price of Eagle Cement rose 1.9 percent Monday to close at P21.50.