Yao group fails to buy out minority in RC Cola vehicle

MANILA, Philippines - The investor group led by businessman and former ambassador Alfredo Yao failed to buy out minority shareholders in what would become the listing vehicle of the local manufacturer of RC Cola.

In a regulatory filing, Mazy’s Capital Inc. said “18,207 [shares of Maybank ATR KimEng Financial Corp.] were tendered during the tender offer period.”

Mazy’s Capital sought to buy 109.46 million common shares or 10.25 percent of Maybank ATR at P3.33 per share or a total of P364.53 million. The tender offer ran from Nov. 19 to Dec. 16.

In September, Mazy’s Capital bought Maybank Kim Eng Holdings Ltd.’s (MKEHL) entire 89.75-percent stake in Maybank ATR for P3.19 billion. Mazy’s Capital purchased 958.923 million Maybank ATR shares at P3.3298 apiece.

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, which are given the chance to exit the company.

However, the surge in the share price of Maybank ATR encouraged minority shareholders to hold on to their stocks.

During the tender offer period, shares of Maybank ATR traded at P16.20 to P21 apiece, way above Mazy’s Capital offer of P3.33 each.

Unlisted holding firm Mazy’s Capital is owned by Zest-O Corp. (57 percent) and Mega Asia Bottling Corp. (43 percent). Its principal activity is acquiring, holding, selling, exchanging, dealing, and investing in stocks, bonds or securities of any government entity, or any public or private corporation.

Maybank ATR is a shell company following MKEHL’s move to consolidate all its assets into Maybank ATR Kim Eng Capital Partners Inc. (MATRKECP). All assets of Maybank ATR, which include shareholdings in AsianLife and General Assurance Corp. and ATR Kim Eng Land Inc., were transferred to MATRKECP.

 

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