ACEN dumps on news Mermac looking to sell 335-M shares
Shares of ACEN [ACEN 6.8 4.1%] [link], the Zobel Family’s renewable energy unit, were down 4.1% to P6.75 in trading yesterday, on news that Mermac Inc. was looking to sell 335 million shares of ACEN at P6.70/share in a private placement.
The sale would raise P2.24 billion for Merrmac, which is the Zobel Family’s private holding company, which is owned by the heirs of Jaime Zobel de Ayala and Enrique Zobel.
The shares represent 0.8% of ACEN’s outstanding shares.
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I don’t have any insight into what the family is doing here with this sale, but the market didn’t wait for that kind of subjective analysis.
Operating on the objective facts, it sold ACEN and pushed the price down toward the P6.70/share level that the Zobel Family is looking to get for its shares.
For those that might be unfamiliar, a private placement is just a share sale that is negotiated and transacted off the PSE grid.
It helps the buyer and seller to gain a little price/cost certainty.
Sure, Mermac could sell the shares on the open PSE market, but the amount that it’s looking to sell is about 10 days’ worth of ACEN volume, and that constant selling pressure might push the average selling price of the 335 million shares down below the P6.70/share level.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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