Money managers from the country’s leading banks and insurance firms are displeased with Metro Pacific Investments’ (MPI) underwhelming tender offer price for its plan to take the conglomerate private.
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SharePhil vice chairman Ed Francisco said his group is seeking “transparency” on how MPI arrived at its tender offer price for MPI.
“We hope investors will get to review the offer and fairness opinion. We hope investors who are unable to tender to be able to sell their shares at same price if company will get delisted so they won’t get stuck,” said Francisco.
The Fund Managers Association of the Philippines (FMAP), led by president Vincent Daffon of Philam, echoed these concerns and stated that the offered price does not reflect MPI’s fair value.
FMAP, which represents a significant block of minority investors in MPI, urged the company to release the fairness opinion or valuation report from an independent provider, as required by the Amended Voluntary Delisting Rules of the Philippine Stock Exchange.
They emphasized the importance of utilizing appropriate valuation methodologies and exercising unbiased judgment when determining the tender offer price.
MPI led by bilyonaryo Manny V. Pangilinan has yet to disclose the “fairness opinion” since revealing the stock’s tender offer price three weeks ago.
MPI’s major shareholders – Metro Pacific Holdings, GT Capital Holdings, Mit-Pacific Infrastructure Holdings, Inc., and MIG Holdings – offered to buy back its shares at P4.63 each.
April Lee Tan, the research chief of COL Financial, advised investors to reject the tender offer and wait for a potentially improved offer from the majority shareholders of MPI.
Tan highlighted that at P4.63, MPI is being acquired at approximately a 50 percent discount to its net asset value and fair value estimate. She also pointed out that GT Capital had purchased MPI shares at P6.10 in 2016.
However, some senior traders have advised MPI’s minority shareholders to consider subscribing to the tender offer to avoid the risk of being excluded if the majority acquires more than a 90 percent stake, which would lead to the automatic delisting of the stock.