Stonebridge Corp., a company chaired by Gizela “Ging” Gonzalez-Montinola, has shelled out P500 million to acquire 250 million shares or about nine percent of Roxas and Company Inc. (RCI), the holding firm of the Roxas Group of Companies.
Based on a disclosure to the Philippine Stock Exchange on Tuesday, the Montinola investment at P2 per share is at a 47 percent discount to Monday’s closing price of P3.75 per share.
The discounted share sale meant that Stonebridge netted a P437.5-million gain from the acquisition, making it the third largest shareholder in RCI, after the founding Roxas-Elizalde families and businessman Leandro Leviste.
Montinola is the wife of retired Bank of the Philippine Islands president and CEO, Aurelio “Gigi” Montinola, an independent director of RCI, and a member of the company’s Executive Committee, Related Party Transactions Committee, Nomination, Election and Governance Committee, and Audit and Risk Committee.
Protecting minority shareholders’ interests
Montinola is responsible for protecting the interests of minority shareholders. It is, however, unclear whether Montinola was involved in the investment made by Stonebridge.
RCI has sold 767.5 million treasury shares in total as part of its fundraising program.
The sale includes 75 million shares at P0.69 each on 7 March; 75 million shares at P0.65 each on 20 February; and 66.9 million shares at P0.44 each on 17 January.
According to the company’s most recent financial statements, it has P1.5 billion of current liabilities exceeding current assets.
The most significant portion of unpaid loans is due to the Bank of the Philippine Islands, where Gigi Montinola also currently serves as an independent director.