Dennis Uy
The group of Davao-based businessman Dennis Uy intends to pay for publicly listed Philippine H20 Ventures Corp. (H20) at around P2.17 per share, valuing the entire shell company at P527.83 million.
The group signed a memorandum of agreement with H2O’s parent company Jolliville Holdings Corp. on Thursday to buy 62 percent of H20 for a total consideration of P327 million plus 62 percent of the remaining cash assets of H2O on closing date, Jolliville told the Philippine Stock Exchange.
Uy’s Udenna group of companies said it’s “always looking for strategic opportunities to expand its businesses and leverage on the synergies between its various companies.”
Accordingly, corporations such as H2O may be considered for acquisition to serve the corporate needs of the Udenna Group, the group said.
Udenna said the transaction had not yet been consummated as H2O would still have to undergo a clean-up exercise of all of its assets and the parties would still thresh out the legal and regulatory requirements for the transaction.
“The purchase price is approximately P2.17 per share but is subject to further adjustments,” the statement said.
Udenna has committed to make a tender offer to other minority shareholders, giving them the option to exit in view of the change in control and prospective change in business. The deal, however, is priced at a much lower level than the P7.45 per share closing price of H20 as of Wednesday.
Adel Tamano, vice-president for corporate affairs at Udenna Corp., said: “The Udenna Group of Companies adheres to highest levels of corporate governance and transparency in our dealings with our stakeholders.”