LMG shares dip as investors fret over discounted share price
Shares of LMG Chemicals Corp. plunged Wednesday as investors headed for the exit door ahead of the closing of the acquisition of the shell company.
United Auctioneers founder and president Dominic Sytin and Robinson Siao are acquiring 65.92 percent of LMG for P3.17439 each share, a steep discount to the stock’s closing price of P4.65 Monday.
LMG shares are currently trading at P4.30 per share, down seven percent from Tuesday’s close.
Sytin is buying 98.583 million or P312.94 million worth of LMG shares while Siao is acquiring 29 million shares for P92.06 million. The total consideration for the purchase is P405 million.
The closing of the transaction and the full payment of the LMG shares held by parent firm Chemical Industries Inc. are subject to, among others, the buyers’ successful conduct and completion of a tender offer of the shares held by small investors.
“The payment by the buyers of the tender offer price for any tender offer shares shall be done simultaneously with the payment for shares of the company held by Chemphil,” LMG said.