EDC to apply for voluntary delisting of shares from PSE
Lopez-led Energy Development Corp. has decided to voluntarily delist from the local bourse.
In line with its plan to delist from the official registry of the Philippine Stock Exchange, EDC is making a tender offer for a minimum of 1.16 billion shares held by minority shareholders at a price of P7.25 per share.
The tender offer is expected to commence from Sept. 25 to Oct. 22.
EDC said the tender offer price represents a 46 percent premium over the closing share price of P4.95 on Aug. 7 and a 40 percent premium over the three- month volume weighted average price of P5.18.
Based on an independent valuation made by financial adviser KPMG, “the tender offer price is fair and reasonable from a financial point of view.”
Following the tender offer, EDC’s public float will go down from 10.9 percent to less than five percent.
“The intention to eventually delist EDC was shared with the market last year and the tender offer that our board has approved today presents a meaningful opportunity for our minority shareholders to realize their investment prior to the delisting of the company, at a significant premium to the current share price,” said Richard Tantoco, president and COO of EDC.
EDC may extend the tender offer period (with prior approval of the SEC) and may, at its discretion, waive the threshold condition.