Lopez Holdings seeks delisting from local bourse

The Lopez family is taking its publicly listed main holding firm back to private hands, citing its desire to consolidate ownership and simplify corporate structure.

This delisting by Lopez Holdings Corp., which trades on the local stock exchange under the ticker LPZ, was proposed to be executed through a tender offer by First Philippine Holdings Corp. (FPH) to acquire the former’s shares at a price of P3.85 per share or at steep premium to market prices. The tender offer will run from Jan. 22 to Feb. 19, 2021.

Lopez Holdings is the parent firm of renewable energy enterprise FPH and broadcasting firm ABS-CBN Corp., whose operations were disrupted as President Duterte’s allies in Congress rejected its bid to renew its legislative franchise.

The board of Lopez Holdings approved the filing of a petition for voluntary delisting from the main board of the Philippine Stock Exchange.

“It is always a good sign when you see an offer for your shares with a significant premium over the market price. We will be happy for the shareholders who decide to avail [themselves] of this opportunity to liquidate their investment. If FPH’s tender offer is successful, LPZ will be delisted as part of the Lopez group’s effort to consolidate the ownership of Lopez Holdings and to streamline the Lopez group’s corporate structure by reducing the number of group holding companies currently listed on the Philippine Stock Exchange from two to just one,” Lopez Holdings president, chief operating officer and chief finance officer Salvador Tirona said.

FPH’s tender offer price represents a 25-percent premium over LPZ’s closing share price of P3.08 on Nov. 27 and a 41-percent, 43-percent and 36-percent premium over the three-month, six-month and 12-month volume weighted average price of P2.74, P2.69 and P2.82, respectively.

Based on the disclosure, FPH intends to acquire a minimum of 20 percent and a maximum of 45.56 percent of the total issued and outstanding common shares of Lopez Holdings from all the shareholders, excluding the shares owned by its ultimate parent entity, Lopez Inc. which has agreed not to tender its common shares.

After Lopez Holdings’ delisting from the stock exchange, FPH will become the only publicly listed holding firm. FPH’s subsidiaries and affiliates include First Gen Corp.; Energy Development Corp. (EDC); First Philippine Industrial Corp.; First Philippine Industrial Park, First Philippine Properties Corp.; First Philippine Realty Corp.; Rockwell Land Corp.; Philippine Electric Corp.; First Philec Inc.; First Sumiden Circuits, Inc.; First Sumiden Realty, Inc., under First Philippine Electric Corporation; First Balfour Inc.; and Manila Electric Company.

In 2018, EDC likewise voluntarily delisted from the local stock exchange. Aside from FPH, First Gen, ABS-CBN and Rockwell remain publicly listed companies.