The transaction values the company at P26.20 per share, or P7.86 billion. However, speculators betting on a generous tender offer may be disappointed.
90 percent below market value
Based on a disclosure by the Okada Group’s holding company, Japan-listed Universal Entertainment, the 200 million shares or 66.6 percent of the company purchased by the PremiumLands consortium were worth 1.31 billion yen or P510.5 million.
This is equivalent to about P2.55 per share, which is significantly lower than the current market price.
This is not necessarily the final tender offer price PremiumLands might pay, but in similar transactions, buyers often set the price close to their acquisition cost.
The tender offer rule was created to protect minority stockholders by ensuring they have the opportunity to exit at the same price as majority shareholders.
PSE trading halt
Trading of Asiabest was halted by the Philippine Stock Exchange on Friday to allow investors the chance to review the transaction.
PremiumLands, chaired by businessman and engineer Francis Lloyd Chua, has yet to clarify its intentions for the Asiabest transaction.
The property firm previously acquired The Mondrian office building in Makati and later developed PMI Tower in the same area.
It also built Market Mall in Ormoc City and has plans to expand into affordable housing.
Based on the Universal Entertainment disclosure, PremiumLands was established in 2012 and has a capital of P2 billion.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
