MANILA, Philippines - The new controlling group in dormant holding firm Southeast Asia Cement Holdings Inc. (Seacem) failed to buy out the minority shareholders in a mandatory tender offer.
In a regulatory filing, mass housing developer 8990 Group of Companies said the minority shareholders refused to let go of their Seacem shares.
“A total of 72,119 shares were tendered and accepted,†8990 Group said. The tender offer ran from June 17 up to July 12.
The purchased shares, however, represent a mere 0.01 percent of the 709.54 million common shares the 8990 Group planned to buy at P0.4083 a piece.
Given the low offer price, minority shareholders held on to their stocks. During the tender offer period, Seacem shares traded at P1.02 to P1.30 each.
In June, IHoldings Inc., Kwantlen Development Corp. and Januarius Resources Realty Corp. – collectively known as the 8990 Group – entered into a purchase agreement to buy 89.87 percent of Seacem from Calumboyan Holdings Inc., Lafarge Philippines Holdings Philippines Inc. and Seacem Silos Inc.
8990 Group, one of the leading low-cost housing developers in Visayas and Mindanao, spent P2.75 billion for the acquisition.
A mandatory tender offer is triggered when an investor buys more than 35 percent stake in a public firm. The acquiring entity should then offer to buy all shares held by minority stockholders.
In April, Seacem finalized the divestment of its 1.11 billion shares worth P11.35 billion in listed cement firm Lafarge.
The 8990 Group is behind mass market brands Deca Homes and Urban Homes. Early this year, it acquired IP Converge Data Center Inc.