By Alena Mae S. Flores – August 08, 2018 at 07:00 pm
The board of Energy Development Corp. approved the company’s plan to voluntarily delist its common shares from the Philippine Stock Exchange as public ownership is expected to fall below five percent after its scheduled tender offer.
The voluntary delisting, which will provide greater corporate flexibility, follows regulations covering the conduct of a tender offer to all common shares held by the public at a price of P7.25 apiece.
“The intention to eventually delist EDC was shared with the market last year and the tender offer that our board has approved today presents a meaningful opportunity for our minority shareholders to realize their investment prior to the delisting of the company, at a significant premium to the current share price,” EDC president and chief operating officer Richard Tantoco said.
Philippines Renewable Energy Holdings Corp. in September last year completed a voluntary tender offer to acquire 8.9 billion common shares of EDC. The geothermal company said PREHC and parent First Gen Corp. at that time communicated to the market their intentions to eventually delist EDC “to pursue a corporate strategy that would require greater flexibility over factors like its dividend policy and leverage, and to support long-term growth.”