FEU gets controlling stake in Roosevelt College
Far Eastern University (FEU) has acquired a controlling stake in Roosevelt College Inc., a non-sectarian private school with a network of five campuses in the greater Manila area, at an adjusted price tag of P1 billion.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, FEU said it had entered into a share purchase agreement for a 99.42-percent stake in Roosevelt College. After a due diligence audit, the valuation was pared down from the earlier price tag of P1.25 billion.
FEU, which is led by the Montinola family, would be able to initially acquire 80 percent of the issued stocks of Roosevelt, worth P808 million, and it has an option to raise the stake to the targeted 99.42 percent. The deal was both approved and signed by FEU’s board on April 12.
More than 140 shareholders holding 80 percent of Roosevelt’s stocks agreed to sell their stake to FEU, led by Roosevelt College president Romeo dela Paz. Other sellers were Leodegario Cruz and Dante Carlos, both members of the Roosevelt board of trustees.
Heirs of several shareholders of Roosevelt, representing around 18.98 percent of the issued and outstanding stocks, likewise signed the share purchase agreement at the same purchase price of around P3,422.14 per share.
Under the agreement, 50 percent of the purchase price was paid upon signing and an additional P253.39 million would be paid within 30 days. The balance of P150.85 million would be placed in an escrow bank account for a period of three years to cover the potential liabilities of Roosevelt.
Trading on FEU was suspended by the PSE starting 9 a.m. on Wednesday pending the company’s compliance with disclosure requirements under the rules on substantial acquisitions and reverse takeovers.
Incorporated in 1956, Roosevelt has about 5,000 students in the primary, secondary and tertiary levels scattered across five campuses. The school has real estate properties in Cubao and Marikina. In Rizal, it has properties in San Mateo, Rodriguez, Cainta and Tanay. The school operates its five campuses in these locations, except in Tanay.
For FEU, the integration with Roosevelt allows the school to scale up its footprint especially in basic education.
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