Alterra tender offer launched at P1.74 per share

THE GROUP led by businessman Hector Thomas Navasero has launched a tender offer to minority shareholders of Alterra Capital Partners Inc. at P1.74 per share after the recent deal to acquire the latter’s controlling stake in line with backdoor listing plans for a genomics business process outsourcing (BPO) hub.

In a tender offer report posted on the Philippine Stock Exchange on Tuesday, Genomics Inc. and Hector Thomas Navasero said they were prepared to acquire 102.755 million or 33 percent of Alterra comprising all the outstanding common shares which were not part of a recent P362.32- million buyout deal.

The tender offer, which began on Sept. 9 and will end on Oct. 10, was priced at P1.74 per share or equal to the highest price paid for common shares of Alterra within the last six months.

Navasero’s group has thus allocated P179 million for the tender offer.

“The bidders are looking into the possibility of infusing assets into the company to fund further business projects for the company which, subject to favorable market conditions, may include a genomics BPO hub for a next generation sequencing facility in Asia, focused on wellness, education and healthcare,” the tender offer report said.

Genomics is the study of the entire set of genes found in living things, including humans, plants, animals and even viruses. Experts in genomics strive to determine complete DNA sequences and perform genetic mapping to help understand disease.

“One option being considered by the bidders is to use the company for the backdoor listing of a business which may contribute to the revenue growth of the company,” the report added.

The new group plans to change Alterra’s corporate structure through the issuance of additional shares, whether out of the current unissued stock of the company or an increase of its capital stock.

Alterra’s principal shareholders – Conrado Rafael Alcantara, Alfonso Anggala and Star Alliance Securities Corp. – earlier agreed to sell around 67 percent of the company to Genomics Inc. and Navasero for P362.32 million.

Formerly iRipple Inc., Alterra was incorporated in 2000 as a software solution provider and merchandiser of computer hardware and software products. In 2014, iRipple’s assets were spun off in line with a contemplated change in primary purpose of the company. A controlling stake in the company was sold to the current shareholders last year, during which its primary purpose was changed to that of a holding company.