Holcim PH to hold 2nd round of tender offer on Sept 28 to Oct 30

MANILA  -The Holcim Group will hold a second tender offer from Sept. 28 through Oct. 30 to purchase the shares of minority stockholders of Holcim Philippines to comply with an order from the Securities and Exchange Commission.

This is in line with the group’s aim to take the Philippine-listed cement giant private through a voluntary delisting process.

Holcim Philippines filed the second tranche tender offer report on Tuesday, adding that the shares will be purchased at the same price of P5.33 per share.

The group had previously passed the 95 percent ownership threshold during the first tender offer round, allowing it to pursue a voluntary delisting process from the Philippine Stock Exchange.

However, the Securities and Exchange Commission ordered the Holcim Group to extend the tender offer period due the burden placed on small investors when the cement group caused Holcim Philippines’ public float to fall below the requirements of the exchange, triggering the suspension of its shares.

READ: SEC orders Holcim PH to extend tender offer period by 20 days

Because of the suspension, remaining stockholders could not use the facilities of the PSE to join the tender offer. Instead, they will be exposed to capital gains tax and additional documentary requirements from the Bureau of Internal Revenue.

Holcim Philippines said the second round tender offer would target the roughly 1.4 percent of shareholdings it does not yet own.

READ: Holcim PH to be delisted from stock exchange

Meanwhile, Holcim Group said it hired Isla Lipana & Co. to assist shareholders in securing their tax clearances from the BIR. The settlement date is scheduled on or before Nov. 9 this year.

“Tendering shareholders shareholders may opt to process their own CAR [certificate authorizing registration],” Holcim Philippines said.

“However, tendering shareholders who prefer the tax consultant to secure the CAR on their behalf should submit the following documents to the tender offer agent on or before 20 December 2023,” it added.

Holcim Philippines is a leading cement maker whose operations span four cement factories with a total annual production capacity of 10 million metric tons. Once delisted, it will continue normal operations but as a privately-held company.

The company’s board and stockholders earlier approved the delisting plan on June 29 and Sept. 22. The company believes that it has satisfied all the conditions of the PSE to delist its common shares from the main board of the PSE, Holcim Philippines said on Tuesday.