PH fund managers’ group wants higher MPIC tender offer price
MANILA -The Fund Managers Association of the Philippines, which oversees trillions of pesos in assets, wants a higher offer price in the proposed P49-billion privatization of Manuel V. Pangilinan-led infrastructure giant Metro Pacific Investments Corp.
The group’s members include state pension funds Social Security System (SSS) and Government Service Insurance System (GSIS), whose combined 5.5-percent stake in Metro Pacific gives them significant sway on the final outcome of the tender offer proposal that was first announced last April 27.
“We stress that we are not against listed companies and majority shareholders of such companies from conducting tender offers and delisting from the Philippine Stock Exchange,” the association said in a joint statement with the Shareholders Association of the Philippines on Wednesday.
“We, however, believe that the tender offer Price of P4.63 per share does not reflect the fair value of the shares of the company,” it added.
Metro Pacific shares closed unchanged at P4.43 each on Wednesday.
The Fund Managers Association joins a growing number of stockbrokerage houses calling on Metro Pacific to raise the offer price.
The buyout deal is being led by Metro Pacific’s main shareholders, Indonesian billionaire Anthoni Salim and the Ty family conglomerate GT Capital Holdings. They will be joined by Metro Pacific chair and CEO Manuel V. Pangilinan and a Japanese investor group that includes industrial giant Mitsui.
The tender offer group earlier indicated they would scrap the tender offer if they fail to acquire more than 95 percent of the company’s shares. This makes the vote of minority shareholders such as the SSS and GSIS decisive.
According to Metro Pacific, the tender offer and privatization was being carried out due to its undervalued share price. It said the offer represents a 22-percent premium over its average price the past year.
“We share the same view—this is why we have also invested in the company. Accordingly, we represent a substantial block among the minority investors of the company,” the association said.
It added that internal calculations by members indicated that Metro Pacific should be worth more than the proposed tender offer price.
“We are, therefore, eagerly awaiting the fairness opinion or valuation report prepared by an independent valuation provider in accordance with the amended voluntary delisting rules of the PSE,” the association said.
“We expect such independent valuation provider to utilize the proper valuation methodologies and exercise independent judgement in performing its functions, so the majority shareholders and the company can be guided on the appropriate tender offer price,” it added.
Metro Pacific’s portfolio includes highly regulated businesses such as electricity distribution giant Manila Electric Co., water concessionaire Maynilad Water Services Inc., toll roads such as the North Luzon Expressway and Subic Clark Tarlac Expressway, the Light Rail Transit Line 1 and a chain of private hospitals, including Makati Medical Center and Asian Hospital and Medical Center.
Recently, it diversified into agriculture via a series of investments in modern dairy farms, coconut processing and vegetable production to address food security issues.
