Japan firm gains control of MVC

Global chemical and speciality materials producer Tosoh Corp. of Japan has acquired the majority control of chemical manufacturer Mabuhay Vinyl Corp. (MVC) by buying an additional 48-percent stake held by Banco de Oro Unibank and minority shareholders for P540 million.

In a disclosure to the Philippine Stock Exchange on Tuesday, MVC said Tosoh now owned 87.97 percent of the company.

Tosoh bought 317.78 million shares at P1.70 per share, composed of 234.57 million shares acquired from BDO pursuant to a deal signed in July and 83.21 million shares acquired through a mandatory tender offer.

The tender offer was conducted by Tosoh to give minority shareholders the option to exit as the deal with BDO would give it the controlling interest in the company.

The country’s largest bank, BDO, sold its shares in MVC equivalent to a stake of about 35.47 percent to focus on its core banking businesses. The lender’s interest in MVC has been described as “accidental,” having been part of a loan settlement.

MVC, which has a market capitalization of P1.26 billion based on Tuesday’s closing price, was previously led by the family of Willian Gatchalian.

Incorporated as a rubber shoe manufacturer in 1934 under the name Mabuhay Rubber Corp., MVC was subsequently reorganized in 1960 to engage in chemical and polyvinyl chloride resin manufacturing.   It adopted its current corporate name in 1966. The principal products of MVC are caustic soda and chlorine derivatives which form about 99 percent of total revenues.

To date, MVC also leases warehouse and depot facilities in major ports of entry. The products are transported to the depots via specialized shipping vessels then to customers’ warehouse.

Japan’s Tosoh group is composed of more than 100 companies worldwide. Its principal markets include the chemical and petrochemical, construction, automotive, consumer electronics, information technology, bioscience, and environmental markets. Doris Dumlao-Abadilla