Stock Commentary

EAGLE shareholders vote to voluntarily delist

Merkado Barkada
EAGLE shareholders vote to voluntarily delist

EAGLE Cement [EAGLE] [link] said that its shareholders, representing over 92% of the company, voted in favor of voluntary delisting from the PSE. EAGLE noted that it did not receive any votes in opposition of the delisting. The delisting will come after San Miguel [SMC 97.0 1.0%] successfully completes its tender offer to acquire the remaining 11.5% of EAGLE that it was not able to purchase outright as part of its P97.4 billion takeover initiated in October.


The purchase of substantially all of EAGLE’s outstanding stock will cause EAGLE to dip below the PSE’s 20% minimum threshold for public ownership.

I don’t have access to any of the strategic thinking behind SMC’s decision to take EAGLE private instead of leave it on the PSE for valuation and liquidity purposes, but it could be as simple as SMC not wanting to undertake a follow-on offering or stock rights offering after its takeover is complete in order to boost EAGLE’s public ownership.

While market conditions have improved considerably over the past month, the outlook for 2023 is not rosy and IPO valuations would reflect that.

If GDP was growing like stink and demand for cement was through the roof amid a sea of other positive economic indicators, no doubt the market would be hot and Ramon Ang might be willing to part with a chunk of this company at a nice price.

But that’s still just a daydream at this point. Can’t have that kind of swagger with the market till in the six thousand range.



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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.




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