Splash delisting targeted by Oct.7

PERSONAL care product and food producer Splash Corp. has filed an official petition to voluntarily delist from the Philippine Stock Exchange, targeting Oct. 7 this year for its bourse exit.

It was earlier reported that Splash would go back to private hands after operating as a public company in the last nine years, taking into account the low trading volume of Splash shares over the last 24 months, the response of the investing public to the ongoing share buy-back program and the company’s desire to avoid telegraphing its business plans to its competitors.

Splash is offering to buy out minority shareholders – who hold 26.66 percent of the country’s outstanding stock – at P3.10 per share.

In a petition filed with the PSE, Splash intends to begin its tender offer by July 18 through September 20.

The company has mandated local investment house Unicapital Inc. as its financial advisor for this offering.

Unicapital has confirmed that tender offer price was “fair” and “reasonable,” adding that Splash shares may be considered fairly valued within a range of P2.75 and P3.41 per share.

“After the termination of the tender offer to be conducted in connection with this petition, the company’s public ownership is expected to fall below the prescribed 10 percent minimum public ownership,” Splash corporate secretary Henry Yaokasin Jr. said in a July 14 letter to the PSE.

At present, the investing public owns about about 26.66 percent or 158.45 million shares of Splash, which listed on the PSE in 2007. The controlling shareholder is thus expected to shell out about P491.19 million to conduct the tender offer.

The tender offer is a requirement for companies wishing to delist voluntarily from the stock exchange. This is to give minority shareholders the chance to exit before the company reverts to private hands./rga