Phinma Energysets tender offer for PPG shares

MANILA, Philippines — Phinma Energy Corp. is conducting a tender offer to minority shareholders of its subsidiary Phinma Petroleum and Geothermal Inc. (PPG).

In a disclosure to the Philippine Stock Exchange, Phinma Energy said it is buying as much as 62.96 million common shares of PPG.

The amount represents 25.18 percent of the total issued and outstanding capital stock of the subsidiary.

Phinma Energy currently owns 126.84 million common shares, representing approximately 50.73 percent of PPG’s total outstanding capital.

“After the transaction, the bidder will own an aggregate of 189,801,107 common shares, representing approximately 75.92 percent of the total issued and outstanding capital stock of PPG,” the company said.

Once completed, Phinma Energy will be making a voluntary tender offer for the remaining 59.21 million  common shares, or 23.68 percent       of PPG.

“The terms of the tender offer shall be announced separately on the date of the commencement of the tender offer,” it said.

AC Energy Inc., the energy platform of Ayala Corp., is acquiring Phinma Energy, the power business of the Phinma Group.

Last January, AC Energy inked a deal to buy Phinma Inc.’s and Phinma Corp.’s combined 51.48 percent stake in Phinma Energy through a purchase of secondary shares for P3.42 billion.

AC Energy will also subscribe to approximately 2.63 billion Phinma Energy primary shares at par value of P1.00 apiece or P2.63 billion.

In total, the transaction value amounts to P6.05 billion.

After the subscription, AC Energy will have a total stake of around 68 percent, subject to the conduct of a tender offer for the shares of Phinma Energy’s minority shareholders.