Hong Kong-based First Pacific Co. Ltd. said Thursday it formed a group that will make a tender offer for shares of Metro Pacific Investment Corp., a move that could eventually lead to the delisting from the Philippine Stock Exchange of the diversified investment holding company.
The tender offer values Metro Pacific, whose investments in infrastructure include tollways, water, and power, at P133 billion.
Aside from First Pacific, the other bidders for Metro Pacific shares are GT Capital Holdings Inc., a group that including Mitsui & Co. Ltd., and a management investment group. They will offer a price of P4.63 for each Metro Pacific share, a premium of 22 percent over the one-year volume weighted average price of the stock.
If the tender is successful, First Pacific said it will acquire an additional 3.8 percent stake for $90 million while GT Capital will raise its stake in Metro Pacific to 20 percent from 17.1 percent for a price of $70 million. Mitsui group will take a 20 percent stake while the management group will acquire 10 percent.
Before Metro Pacific can be delisted, however, a general meeting needs to be held and a vote of at least two-thirds of shareholders must be secured.
First Pacific said the bidders feel the intrinsic value of Metro Pacific’s core investments in infrastructure in the Philippines has not been fully reflected in its share price for some time. It added that the tender offer will provide minority shareholders the opportunity to realize a significant premium for their shareholdings while a delisted Metro Pacific could pursue its investment strategy.
Mitsui said the investment is a unique opportunity to acquire a portfolio of assets encompassing core infrastructure such as power, water, and tollways in a market that is expected to enjoy sustained economic growth in the years ahead. Metro Pacific would, in turn, benefit from the expertise of Mitsui, it added.
“We envision this transaction will release value in MPIC for the benefit of our shareholders and we look forward to working with our partners in MPIC for the long term, undistracted by the need to focus on short-term – often quarterly – goals that public ownership often imposes,” First Pacific executive director Christopher Young said in a statement.
“We are pleased to participate in this tender offer to increase our current stake in Metro Pacific. This further diversifies GT Capital’s core portfolio. Our participation aligns with our mission of creating further value for our stakeholders and contributing to nation-building,” GT Capital chief financial officer Francisco Suarez Jr. said.
