Diversified conglomerate San Miguel Corp. has announced plans to buy 88.5 percent of Eagle Cement Corp. from the family of bilyonaryo Ramon S. Ang (RSA).
In a regulatory filing, SMC said its board has authorized its management to negotiate and enter into a share purchase agreement with RSA and his children John Paul and Monica as well as Far East Holdings, the principal shareholder of Eagle Cement.
SMC agreed to acquire Eagle Cement shares at P22.02 apiece, a 43 percent premium over the stock’s closing price of P15.40 Tuesday.
At P22 per share, AB Capital Securities said SMC is paying P110 billion for Eagle Cement with the latter’s controlling shareholder expected to net P97 billion.
Eagle Cement shares jumped 3.36 percent or 50 centavos higher than Monday’s close.
SMC corporate information officer Ferdinand K. Constantino said the proposed transaction would “trigger notification and clearance with the Philippine Competition Commission (PCC) and a tender offer of the shares held by the minority shareholders” of Eagle Cement.
Under PCC’s rules,
mergers and acquisitions that reach a size of party of P6.1 billion and a size of transaction of P2.5 billion will have to be reported to the antitrust watchdog for mandatory review.
The PCC will then review the transaction and decide whether the deal should proceed.
However, PCC can stop the agreement if it finds that the contract “will substantially prevent, restrict or lessen competition.”