Pepsi-Cola Products Philippines, Inc. reported that its controlling shareholder Lotte Chilsung Beverage Co. Ltd. has suspended the tender offer for the local bottler’s shares.
In a disclosure, PCPPI said Lotte Chilsung said it has suspended the conduct of the tender offer for two business days and will refrain from accepting any shares from being tendered effective October 8, 2020.
However, the tender offer will be relaunched on October 12, 2020.
Lotte Chilsung’s tender offer aims to acquire up to 77,858,236 common shares in PCPPI (from all shareholders of the Company other than the Bidder, Lotte Corporation and Quaker Global Investments B.V.) prior to its delisting.
The suspension comes after the PSE “verbally advised the Tender Offer Agent, First Metro Securities Brokerage Corporation, that the PSE will not approve the crossing through the facilities of the PSE of shares that will be tendered by minority shareholders in connection with the Delisting Tender Offer.”
This is because PCPPI has fallen below the minimum public ownership requirement and its shares are currently suspended from trading.
“As a result thereof, the tendered shares cannot be crossed as an On-Exchange Transaction, and the transfer of such shares will be conducted outside the facilities of the PSE,” Lotte Chilsung said.
Thus, the Korean firm “deems it prudent to suspend the conduct of the Delisting Tender Offer pending settlement and finalization of the mechanics of the Off-Exchange Transaction.” “Shareholders who have tendered their shares and who wish to withdraw the same are requested to coordinate with the Tender Offer Agent on the matter,” it added