The squeeze play initiated by the Government Service Insurance System led by investment banker Wick Veloso has disrupted the best laid plans of Metro Pacific Investments (MPI) major investors.
GSIS’s aggressive buying in the middle of MPI’s tender offer forced GT Capital of the Ty family to buy P4.3 billion worth of MPI shares.
GSIS’ decision to buy 2.5 billion MPI shares (and quadruple its stake to 12 percent) rather than sell its holdings also thwarted the moves of bilyonaryo Manny V. Pangilinan and Mitsui & Co. of Japan from reaching their desired shares purchase target.
Overall, the MPI bidders – Metro Pacific-Salim, GT Capital, Mit-Pacific Infrastructure Holdings of Sumitomo, and MIG Holdings of Pangilinan – were only able to buy a total of 5.465 billion shares in the tender offer, or 40 percent short of their goal of 9.165 billion shares.
GT Capital reported buying 836 million shares at P5.12 to P5.19 per share on September 4 and 5 after GSIS disclosed it had bought enought shares to give it one board seat in MPI. The purchae increased its stake from 17 percent to 20 percent.
GT Capital was only able to buy 436 million MPI shares in the tender offer, way off its goal o 731 million shares. But it still achieved its post-delisting target of raising its MPI stake to 22 percent from 17 percent thanks to its last-minute open-market purchases.
However, Mitsui’s Mit-Pacific, the driving force behind the plan to privatize MPI, was less fortunate.
Mit-Pacific acquired only 2.983 billion shares or 10.7 percent interest in MPI, way below its target of five billion shares or 18 percent.
Pangilinan, MPI’s chairman and president, managed to secure only 1.5 billion shares, representing a 5.5 percent stake in MPI, falling short of his goal of 2.5 billion shares or nine percent.
Metro Pacific-Salim also fell short of its goal but it hardly matters as it remained the single-biggest investor in MPI with 49 percent.
Clearly, Veloso’s gambit was never in the cards of the MPI bidders.
See Related Stories:
GSIS has been licking its chops over Metro Pacific’s infra since MVP’s rendezvous with Wick Veloso months before tender offer
Metro Pacific’s delisting drama: Hotshot banker Wick Veloso to keep GSIS stake after gatecrashing Salim, Mitsui, GT Capital, MVP party
Wick Veloso’s masterstroke: GSIS transforms from prey to predator, sets sights on Metro Pacific board seat as it refuses to take hit from lowball tender offer
Wick Veloso gets what he wants: Metro Pacific delisting in peril after GSIS more than triples stake to 12%
Wick Veloso throwing a monkey wrench into tender offer of MVP, Ty-blings, Mitsui? GSIS reportedly buying up Metro Pacific shares to derail delisting