Shares of sugar miller Victorias Milling Corp. rose by 10.53 percent yesterday after a small but significant block of shares changed hands at a market premium on Friday.
This developed as VMC announced board approval to redeem up to P600 million worth of convertible notes as part of its alternative rehabilitation plan and debt restructuring agreement with creditors.
On Friday, about 162.8 million shares of VMC were traded through two block transactions at the Philippine Stock Exchange at a price of P4.38 per share, 19 percent higher than Thursday’ s closing price of P3.68 per share.
Last Friday’s trades worth about P736 million accounted for about 7 percent of VMC’s outstanding shares. As of press time, there is no disclosure yet on the identity of the buyer although these trades were enough to drive VMC shares higher on Monday.
Shares of VMC closed on Monday at P4.20 compared to Friday’s P3.80 per share following Friday’s block sale. Stock dealers said there were talks that the group of tycoon Lucio Tan may be consolidating shares in VMC and that there were other big investors that may want to enter or increase their stakes in the sugar business.
Meanwhile, the redemption of convertible notes is seen as part of VMC’s efforts to cut its debt stock and soon exit court-assisted rehabilitation. Doris C. Dumlao