In a stock exchange filing on Friday, FERRO announced the resignations of directors Yerik Cosiquien and Jesus G. Chua, who are also CEO and president of Cosiquien’s privately-held ISOC Holdings.
They will be replaced by M.M. Lazaro and Associates lawyers and partners Philipe T. Aquino and Abel M. Almario.
What happened?
On Friday, FERRO announced plans to issue 80 million new shares to Themis Group Corp. at P1 each or P80 million, giving the latter a 23.4 percent stake.
This resulted in a shift in FERRO’s board composition, with the inclusion of representatives Aquino and Almario.
FERRO shares surged over 18 percent to P4.31 each, valuing the company at P1.13 billion, after a brief trading halt on Friday.
Deal rumors caused FERRO’s share price to more than double over the past month, bringing year-to-date gains to about 60 percent.
Who is Themis Group?
The disclosure did not provide details on Themis Group, while the company did not appear in the database of the Securities and Exchange Commission.
An industry source told InsiderPH that Themis is involved in the real estate sector, and its principals also own gaming assets.
Dormant company
Ferronoux is a dormant company, meaning it has minimal operations and assets, making it an ideal target for businesses seeking to list on the Philippine Stock Exchange without going through the traditional initial public offering process.
While the FERRO transaction involves a minority stake, it’s possible for the investor or other parties to increase its ownership, the source said.
A regulatory filing showed that the majority of shares in FERRO are held by a stock brokerage house, Armstrong.
Sale talks
Last week, FERRO confirmed an InsiderPH report that the firm was in sale talks to a new investor.
“At this stage, although we are in negotiations with multiple parties, no final agreements or commitments have been made,” the company said in a previous filing.
“We remain open to exploring all strategic options, including the potential sale of the company, provided such a proposition aligns with the best interests of our shareholders and offers a compelling value proposition,” it added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
