In a report to the Philippine Stock Exchange, PHA with LDA Capital led by money managers Anthony Romano and Warren Baker committed to providing PHA with up to P2.5 billion in committed equity capital over the next 36 months under a put option agreement (POA) which was approved on July 20.
On top of this, LDA has also agreed to purchase 133 million shares of PHA at P2.26 per share, a 133% premium on the average volume-weighted average price (VWAP) in the last one and half months which it could exercise during the course of the POA.
While the final number of shares that LDA would buy would depend on PHA’s price over the next three years, PHA said LDA’s share would not exceed 20 percent of the company.
PHA plans to use the new money from LDA to finance its real estate projects (West Palawan Premiere and Goshen Land Capital), natural and geo resources development, and in fintech (specifically, SquidPay Technology which will be folded in the third quarter of 2021).
The three-year-old LDA is focused on investing in merging private and public companies (distressed, complex, and undervalued) with “special situations” (cyclical, contrarian, or event-driven). Romero and Baker have handled over $10 billion worth of transactions in 42 countries in their previous work.