Milk-maker Alaska Milk Corp. has taken the first step to bring its shares back to private hands as its board approved a resolution for voluntary delisting from the Philippine Stock Exchange.
Earlier this year, Alaska’s top official said there was no longer a need for the company to remain publicly listed given its net capital position. At the same time, the company thinks that reportorial obligations to the PSE inadvertently telegraph its strategic moves to competitors.
Alaska Milk is now controlled by Dutch dairy giant Royal Friesland Campina (RFC), which completed in June a tender offer to minority shareholders after acquiring the controlling stake from the Uytengsu family.
At the close of the tender offer, which was priced P24 per share, RFC ended with 97.7 percent control of Alaska Milk.
Following the board approval and the completion of the tender offer, the company is required to file with the PSE a petition for delisting.
The company must submit a fairness opinion or valuation report stating that—from the financial point of view of the person making the report, based on certain procedures followed and assumptions made—the terms and conditions of the tender offer are fair.
At the same time, the listed company applying for delisting must not have any unpaid fees or penalties with the bourse.
The company’s new controlling stockholder, RFC, has existing businesses in Malaysia and Thailand.