By JAMES A. LOYOLA
Lotte Chilsung Beverage Co., Ltd. is reopening its tender offer for the public shares of Pepsi-Cola Products Philippines, Inc. (PCPPI) while it waits for the Philippine Competition Commission to approve the planned acquisition.
In a disclosure to the Philippine Stock Exchange, PCPPI said the Securities and Exchange Commission has granted its Request for Exemptive Relief of the rule that it should settle payments within 10 business days from the end of the tender offer last January 16, 2020.
Lotte Chilsung wants to be allowed to settle the payment or to return the tendered shares within five days after the PCC decides on whether to allow it to buy more PCPPI shares.
The SEC’s grant of exemptive relief hinged certain conditions such as requiring the Tender Offer to remain open until 10 days from the disclosure of the PCC decision on the transaction.
Lotte Chilsung, through PCPPI, was also required to disclose to the Philippine Stock Exchange and SEC the decision of the PCC immediately upon receipt and to permit the securities tendered to be withdrawn at any time during the period that the tender period remains open.
PCPPI said “Lotte Chilsung advised the Company that ‘the Company shall re-open the Tender Offer Period. Accordingly, an Amended Tender Offer Report to reflect the developments on the transaction, including, among others, the re-opening of the Tender Offer Period, will be filed in due course.’”
Lotte Chilsung is offering to buy up to ₱4.16 billion worth of PCPPI shares from minority shareholders to gain majority control of the beverage firm.
PCPPI said Lotte Chilsung has published its intent to acquire up to 2.13 billion common shares of the Company through a tender offer to all shareholders other than Lotte Corporation and the members of the Board of Directors.
The target shares comprise 57.58 percent of PCPPI’s outstanding capital of 3.69 billion shares. The company has a public float of 32.78 percent.
The tender offer price has been pegged at ₱1.95 per share.