Robinsons Retail Holdings Inc. (RRHI) is spending up to P11.25 billion to buy out minority shareholders as the Gokongwei family moves to take the company off the Philippine Stock Exchange (PSE).
RRHI’s controlling shareholders want to increase their stake to at least 95 percent, the minimum required under PSE rules for voluntary delisting.
JE Holdings, RRHI’s biggest shareholder, is offering to buy up to 232.84 million shares at P48.30 each in a tender offer that will run from 25 May to 6 July. The company hopes to complete the delisting by 28 July.
The offer price is 23 percent higher than RRHI’s last closing price of P39.25 and 32 percent above its one-year average price.
The Gokongwei group already owns 78.15 percent of RRHI, including JE Holdings’ 46.1-percent stake. If enough shareholders sell, the group’s ownership will rise to at least 95 percent, clearing the way for delisting.
RRHI also said shareholders holding 82.82 percent of its shares approved the delisting plan during the company’s annual meeting on 12 May.
JE Holdings said the tender offer is being made specifically to delist RRHI from the stock exchange.
Once delisted, RRHI shares will no longer trade on the PSE, making it harder for remaining shareholders to sell their shares. The company will also no longer be required to meet the reporting and disclosure rules imposed on listed firms.
The tender offer still needs approval from the Philippine Competition Commission and clearance from the PSE.