Converge completes P6.5B share buyback

Bilyonaryo Dennis Anthony Uy’s Converge ICT Solutions Inc. has successfully bought back 259.721 million shares from Warburg Pincus affiliate Coherent Cloud Investments for P6.5 billion.
In a disclosure to the Philippine Stock Exchange, Converge said the shares acquired represent 3.5 percent of the company’s pre-transaction outstanding share capital from Coherent Cloud.
The share buyback was concurrent with the Coherent Cloud’s accelerated book build offering (ABO), which according to Converge, “witnessed strong demand from international and local investors.”
The price per share of the ABO and the buyback was P25 apiece.
Coherent Cloud will fully exit from the company upon completion of the ABO, buyback, and transfer of remaining shares.
It will distribute within 30 days its remaining shares in Converge ICT to certain parties as part of existing arrangements.
Saurabh Agarwal, managing director of Warburg Pincus, will remain on Converge ICT’s board even after the completion of the transactions.
Coherent Cloud invested $225 million in Converge in 2019. Its stake has been reduced to nearly half with the sale of P12.2 billion worth of secondary shares in October 2020.
Its stake in Converge further decreased from 15.83 percent to 10.25 percent following a block sale.