UK firm’s takeover of SPI Technologies stalled

UK-based PPM Ventures Ltd.’s plan to take over IT outsourcing firm SPI Technologies will no longer push through as both failed to conclude a sale agreement.

In a disclosure to the Philippine Stock Exchange, SPI chief financial officer Francisco Suarez said the exclusivity period given to PPMV to launch a tender offer for all the outstanding capital stock of SPI has lapsed, with the parties not reaching any agreement on the principal terms and conditions of said offer.

PPMV was supposed to acquire A. Soriano Corp.’s 12-percent stake in SPI for $84 million or P14.80 per share, based on the assumption the fully diluted share capital of SPI is 312.2 million shares and a peso-dollar exchange rate of P55:$1.

The original tender offer price was approximately P14.26 per share, based on the assumption of a peso-dollar exchange rate of P53:$1.

However, SPI management estimated the transaction costs, fees and taxes to be deducted from the tender offer price would amount to P0.50 per share.

PPMV is a leading source of private equity finance specializing in medium and large buy-outs and institutional purchases. It is owned by Prudential Plc., one of the UK’s largest institutional investors. The firm has completed investments in different Asia-Pacific countries, with transactions of up to $1 billion in size.

PPMV’s offer excludes SPI’s call center unit eTelecare International, Inc.

SPI is a Board of Investments-registered firm and an ISO 9002-certified entity engaged in computer database conversion. It is a provider of world-class, diversified information technology services to companies in the United States, Europe and Asia.

It is the first Philippine company to engage in data base manufacture solely for export and the first IT firm to be listed in the PSE.

SPI’s end-users include corporations, educational institutions, government agencies, hospitals, libraries, utilities and other institutions located in North America, Europe and Asia.

The company provides IT services including e-call center customer relationship management for voice and electronic channels; conversion of news, professional and technical information into a standardized electronic form for major Internet and online content providers and corporate clients; conversion of evidence related documents into a searchable CD ROM format for corporations involved in major litigation; electronic mapping and database building for utilities; and software programming and ERP implementation.