JTH Davies shares surge on takeover rumors

MANILA, Philippines - JTH Davies Holdings Inc., controlled by the group of businessman Eusebio Tanco, continued its upward surge yesterday as investors bought up the stock on speculations it is the target for the backdoor listing of another Tanco-led company, Systems Technology Institute (STI).

JTH has grown 64 percent in the past two weeks from only P1.80 on July 18. The stock peaked at P3.79 yesterday, prior to closing at P2.95 or an increase of 2.4 percent from its previous close.

A total of 1.786 million shares valued at P5.73 million changed hands.

With a free float level of 31 percent, JTH has market capitalization of P884.68 million.

Tanco said last month he is considering a backdoor listing for STI by merging the school with shell firm JTH Davies or list the educational institution separately.

Tanco also earlier revealed they are looking into taking a controlling stake in a major university in Metro Manila, believed to be the Philippine Women’s University.

He said the acquisition could be worth between P1.2 billion to P1.3 billion.

Tanco said STI will continue its expansion with around P2.5 billion in capital budget set aside over the next few years.

Founded in 1983, STI now has a network of over 100 college campuses around the country. It also has now seven grade schools in Metro Manila and northern Luzon.

Tanco also has interests in mining, pre-need products, port operations and gaming.