Starmalls tender offer starts

MANILA, Philippines – The Villar family’s Vista Land & Lifescapes, Inc. (VLL) has commenced its P4.46 billion tender offer for the minority shares of subsidiary Starmalls Inc.

The company commenced the offer Monday as part of Vista Land’s acquisition of Starmalls.

“As disclosed by VLL, the tender offer will remain open for 30 business days and will end on Feb. 15, unless otherwise extended by VLL,” Starmalls said.

VLL will buy 989.76 million Starmalls shares from minority stockholders for P4.51 each for a total consideration of P4.46 billion.

It is acquiring a total of 88.25 percent of the outstanding capital of Starmalls from the Fine Group, comprising Fine Properties Inc., Althorp Holdings, Inc., Manuela Corp., Manuel Paolo A. Villar, and Manuel B. Villar, Jr.

The Fine Group will in turn subscribe to approximately 4.6 billion new Vista Land shares at P7.15 per share.

VLL disclosed last November it was acquiring Starmalls in a deal valued at P33 billion. The transaction will pave the way for the consolidation of the residential and shopping mall businesses of billionaire Manuel Villar.

The acquisition strengthens VLL as the country’s fourth largest integrated property developer and will allow it to seal partnerships for self-contained communities.

 Vista Land CEO Manuel Paolo Villar, son of the former Senator, said the acquisition would accelerate Vista Land’s transition to a fully integrated developer.

 He said integrating both residential and commercial developments would enable the company to achieve higher selling prices, increased sales velocity and higher retail rental rates.

Vista Land and Starmalls are both principally owned by the Villar Family.

Starmalls currently owns and operates 10 retail malls in key cities and municipalities, and two business process outsourcing (BPO) commercial centers in Metro Manila, with a combined gross floor area of 509,385 square meters.

On top of this, Starmalls is currently building four retail malls and one BPO commercial center.