Razon buys Active Alliance

Businessman Enrique K. Razon Jr. has acquired idle listed firm Active Alliance Inc. for P200 million, ending weeks of speculation that drove the company’s share price up to record highs.

Investors that made bets on the company, however, may have been disappointed at the acquisition price of only about P3 per share, considering that AAI shares last closed at P76.

“That’s the price you pay when you’re speculating on a stock,” said Jomar Lacson, head of research at Campos Lanuza Co. Inc.

AAI shares were traded at as high as P102 per share in the last two weeks. Share prices soared to record highs from around P5 at the start of the month.

Razon was earlier rumored to be eyeing AAI to be used as a vehicle to take his newly formed gaming company, Bloomsbury Investments, public via a backdoor listing.

On Tuesday, AAI voluntarily suspended the trading of its shares ahead of a major announcement regarding the company’s ownership.

In its disclosure on Wednesday, AAI said it would be acquired by a Razon company, a little-known firm called Prime Metroline Transit Corp., for P200 million. The disclosure did not reveal any other details about Prime Metroline.

Razon currently owns Manila-based International Container Terminal Services Inc., one of the world’s largest port developers.

“Five stockholders of AAI including Wespac Holdings Inc. agreed to sell 60 million shares,” the listed firm said, making up 75 percent of the company’s total capital stock.

Lacson said this put the value of the company at about P260 million.

“The highest turnover for AAI was P100 million. That’s how much money was at risk this week,” Lacson said. “A lot of people have been watching that stock and I imagine a lot of people have been burned,” he said.

The trader said AAI’s fate would remain uncertain until Razon revealed his plans for the firm. He said it was still unclear whether Razon would indeed use AAI to list Bloomsbury.