Millennium Global drops plans to acquire Calata
Seafood trader Millennium Global Holdings Inc. has scrapped plans to acquire a controlling stake in agricultural firm Calata Corp.
In a disclosure to the Philippine Stock Exchange, MG said it “has been decided with finality that the company will no longer proceed with its planned acquisition of 81 percent of listed company Calata.”
MG was supposed to acquire up to 2.5 billion new shares of Calata at P1 apiece.
The company said it shall “instead tap its other business opportunities and areas of growth to fortify its business within the country and abroad.”
MG’s decision to cancel the planned purchase came after the PSE insisted that Calata take the voluntary delisting route and conduct a tender offer for the shares held by minority shareholders.
Calata thumbed down the PSE’s proposal, which it said was “grossly impractical” and would “kill the company.”
In addition, Calata said its financial resources were not enough to cover the repurchase of shares.