Plot Twist: The Lopez Holdings Withdraw from Stock Exchange

The Lopez Holdings told the local stock exchange that the firm will voluntarily delist until First Philippine Holdings Corp.

(C)Philstar

As part of efforts to streamline the organizational structure of the Lopez Company by cutting the number of public holding entities, Lopez Holdings Inc. will exit the local stock exchange.

Surprisingly, The Lopez Holdings told the local stock exchange that the firm will voluntarily delist until First Philippine Holdings Corp. (FPH), its power arm, completes the acquisition of up to 45.59% of the outstanding parent shares owned at P3.85 each by minority investors.

Look: Federico R. Lopez, Chair and CEO of First Philippine Holdings Corporation is the Management Association of the Philippines' MAP Management Man of the Year 2020. pic.twitter.com/Q61wgaR4VB

— Warren de Guzman (@wddeguzman) October 13, 2020

The tender offer price reflects a premium of 25 percent over the recent closing share price of P3.08 for Lopez Holdings. After a three-day weekend, the company’s equity exchange was halted following the disclosure.

It is a great sign when people see an offer for shares with a significant premium over the market price. It will be happy for the shareholders who decide to avail of this opportunity to liquidate their investment. This is stated  by Salvador Tirona, President of Lopez Holdings, who also acts as chief operating and financial officer.

If the tender offer from FPH is successful, LPZ will be de-listed as part of the Lopez Group’s attempt to simplify Lopez Holdings’ ownership and streamline the organizational structure of the Lopez Group by growing the number of group holding companies currently listed on the PSE from two to just one.

Lopez Inc., the ultimate parent company of the Lopez Group, will not partake in the tender offer, meaning it won’t sell its Lopez Holdings stock to FPH. The tender will commence on 22 January 2021 and conclude on 19 February.

In view of this, The Lopez Holdings was incorporated in 1993 and acts as the parent company of FPH and the publishing firm ABS-CBN Corp. It is also uncertain if the new change by the organization will affect its subsidiaries activities. FPH has evolved so much since it left its coal assets 4 years ago in favour of clean energy sources.

Meanwhile, after President Rodrigo Duterte’s supporters in Congress destroyed the network’s offer for a new 25-year franchise, ABS-CBN has begun its move to digital in an effort to avoid a financial hemmorrhage.