SMC property unit goes back into private handsBy Doris C. Dumlao
Philippine Daily Inquirer
MANILA, Philippines—San Miguel Corp. is taking its property unit San Miguel Properties Inc. (SMPI) back into private hands.
The board of SMPI approved the filing of a voluntary petition to delist from the Philippine Stock Exchange (PSE), the company on Wednesday said in a disclosure.
In line with the PSE’s delisting rules, the board also approved SMPI’s conduct of a tender offer to buy out shares held by minority stockholders.
The thinly traded SMPI, a subsidiary of San Miguel Corp., has a meager public float of 0.06 percent out of its market capitalization of about P85 billion. It last traded at P700 a share on Nov. 13 last year.
SMPI was one of seven public companies whose trading had been suspended due to failure to comply with the 10-percent minimum public float required by the PSE.
In its disclosure, SMPI said it had mandated ATR Kim Eng Capital Partners Inc. as financial adviser on its tender offering.
The tender offering is targeted to run from Feb. 27 to March 26. Management was authorized to decide on the price and other terms and conditions of the offer.
When it ceases to be a public company, SMPI’s financial reporting and disclosure obligations will become less stringent compared with its listed peers.