LMG tender offer launched at P3.17 per share
The group led by United Auctioneers president Dominic Sytin has offered to buy out minority shareholders of LMG Chemicals Corp. at a price of P3.17439 each share in compliance with the mandated tender offer rule under the Securities Regulation Code.
Sytin and businessman Robinson Siao , who entered into a deal to acquire 65.92 percent of LMG from the Garcia family last month, are making a tender offer for 65.96 million shares or 34.08 percent of LMG to give minority investors the option to exit at the same price as the major selling parties. The tender offer price represents a 36.7 percent discount to LMG’s closing price of P4.34 each share Thursday.
In a stock exchange filing, LMG said the tender offer, a mechanism designed to protect minority investors in the event of a buyout of a company, would run from Nov. 7 to December 11.
Upon completion of the tender offer, the bidders shall elect their representatives to the LMG board.
United Auctioneers is engaged in the auction of used trucks and heavy equipment in Subic. The 50-year old Sytin also chairs Foton Motor Philippines Inc. which is engaged in business of selling, importing, and manufacturing of automotive.
Siao, on the other hand, is the president of Value Quest Securities Corp., which is engaged in the stock brokeragr business. He was formerly with KGI Securities Philippines Inc.