UK-based firm to acquire 66.7% of SPI Technologies

SPI Technologies Inc. said yesterday it has signed a non-binding agreement with UK-based PPM Ventures Ltd. for the sale of 66.7 percent of its fully diluted share capital.

Owned by Prudential plc, one of UK’s largest institutional investors, PPM Ventures is a leading source of private equity finance, specializing in medium and large buy-outs and institutional purchases in Asia and Europe.

In a disclosure to the Philippine Stock Exchange, SPI chief financial officer Francisco Suarez Jr. said the company’s shareholders including A Soriano Corp., which holds a 12 percent interest in SPI, are willing to sell their shares in the event that PPM pursues its planned acquisition.

Suarez said PPM Venture’s offer does not include the assets of e Telecare International. The UK-based firm, he said, has offered to buy SPI shares at P14.26 per share.

He said SPI has agreed to give PPM Ventures an exclusivity period to allow the conduct of due diligence and other activities in relation to the proposed transaction and to reimburse the foreign firm’s costs under certain circumstances.

The due diligence will determine whether PPM Ventures will pursue its offer or whether the offer price will be modified.

SPI said PPM Ventures wants a guarantee that at least a 78.1 percent stake in SPI will be acquired before they launch a tender offer for the rest of the SPI shares.

Subject to the fulfillment of various conditions, a tender offer to acquire all of the issued and to be issued share capital of SPI will be made through a newly-incorporated company to be established in the Philippines on behalf of client funds managed by PPM Ventures.

Suarez expects PPM Ventures to launch a tender offer for the issued and to-be-issued share capital of SPI by the end of October 2003.