Manila—(PHStocks)—Chemrez Technologies Inc. (PSE: COAT) intends to voluntarily delist from the Philippine Stock Exchange should its public float fall below the minimum 10% requirement following the completion of the tender offer by its parent company, D&L Industries Inc. (PSE: DNL).
The tender offer was announced on 01 September by D&L Industries, which currently owns 34.7% of Chemrez Technologies, to purchase up to 850.39 million shares of the Company, equivalent to 65.3% of its issued and outstanding capital. The tender offer price is PhP6.00 per share, which is 24% above the 60-day moving average of the Company’s share price as of 29 August. The tender offer started last 4 September and will run until 3 October.
All of Chemrez Technologies’ principal stockholders, executive officers, and affiliates, have advised that they have already tendered all of their currently owned shares in the offer.
If, as result of the tender offer, the ownership falls below the minimum public ownership requirement of 10% as mandated by the PSE, Chemrez Technologies will most likely initiate voluntary delisting rather than wait for the Philippine Stock Exchange to institute involuntary delisting. Further note that there is no intention to turn the Company into a listed shell entity.
“This offer provides the final attractive opportunity for the remaining minority shareholders to fully realize their profits. Should the company elect to delist and have its shares no longer traded on the PSE, the ability to quickly liquidate the shares may be diminished in the absence of a healthy marketplace. Delisting would certainly reduce the shares’ marketability. Also, trading of shares of a private company entails higher taxes as capital gains tax and documentary stamp tax on every sale, barter, exchange or other disposition of shares of Chemrez shall be imposed,” according to Chemrez Technologies Treasurer and Chief Finance Officer Alvin D. Lao.