Bilyonaryo Dennis Anthony Uy said institutional buyers bought the P12.6 billion shares of Converge Information and Communications Technology Solutions (CNVRG) sold by the firm’s second biggest owner, Coherent Cloud.
“Converge is in strong hands. Our partner made sure the buyers are long-term or cornerstone investors,” said CNVRG founder and CEO Uy.
Coherent Cloud, owned by US private equity firm Warburg Pincus, sold a total of 420 million CNVRG shares at P30 per share in four tranches on November 19. CNVRG has dropped five percent to P30.80 since the big selloff.
The sale reduced Coherent Cloud’s stake in CNVRG from 15.83 percent to 10.25 percent or P23.8 billion.
Uy said Coherent Cloud received a total of P45 billion worth of offers for its Converge shares.
Coherent Cloud originally had a 29 percent stake in CNVRG from its $225 million investment in 2019. But its stake has been reduced to nearly half with the sale of P12.2 billion worth of secondary shares in CNVRG’s IPO in October 2020.
Uy noted that Coherent Cloud waited over a month since its 365-day lockup from the initial public offering (IPO) expired on October 11 before unloading the shares.
“Coherent cloud made sure that buyers are quality investors,” said Uy
CNVRG shares have been on downward spiral since hitting an all-time high of P45.40.
While the stock is currently nearly double from its IPO price of P16.80, Uy has remained busy defending CNVRG’s valuation from skeptics.