Filinvest Land Inc. (FLI), the property development arm of the Gotianun group, announced Wednesday that its voluntary tender offer for FLI common shares was oversubscribed by 2.3 times. The company’s tender offer agent received applications for 4.23 billion FLI shares, equivalent to 17.47 percent of its total issued stock, surpassing the 1.86 billion share cap.
As a result, FLI will exchange these shares for 597.12 million Filinvest REIT Corp. (Filreit) shares, or 12.2 percent of Filreit’s total stock. The offer received substantial backing from institutional and minority shareholders across the Philippines, according to FLI.
Following the transaction, Filreit’s public float rose to 46.68 percent, well above the regulatory minimum of 33 percent for real estate investment trusts (REITs). Prior to the offer, Filreit’s float stood at 34.48 percent. This expansion also provides FLI with the flexibility to infuse additional assets into Filreit, while retaining 26.44 percent public ownership in FLI, well above the 10 percent minimum requirement for listed companies.
FLI president and CEO Tristan Las Marias expressed confidence in the tender offer’s success, noting it would create long-term benefits for shareholders through asset infusions and potential capital appreciation. The tender offer, which ran from 7 October to 27 November, allowed FLI shareholders to swap their shares for Filreit stock, which offers stable dividends and exposure to a diversified portfolio of income-generating properties.
Filreit’s portfolio, as of September, includes over 330,000 square meters of leasable office space and land leased to a hotel, with strong potential for capital appreciation. BPI Capital Corp. acted as the coordinator for the offer, with BPI Securities Corp. serving as the tender offer agent.
