Beverages tycoon Alfredo Yao is giving away the shares of RC Cola bottler ARC Refreshments Corporation (ARC) to shareholders of his investment arm Macay Holdings Inc. in what may be in preparation for a public listing.
In a disclosure to the Philippine Stock Exchange, Macay said its Board of Directors has approved the declaration of dividends equivalent to P2.15 billion by way of property dividend of one billion common shares of ARC to be distributed to all eligible shareholders of Macay as of record date of Oct. 23, 2023.
Aside from RC Cola, ARC also produces other fruit-flavored soda drinks as well as Extra Joss energy drink and Glazier bottled water.
The property dividends shall be paid at an entitlement ratio of 0.936 common share of ARC for every one common share of Macay held by the shareholder. Any resulting fractional share shall be paid in cash.
All Macay shareholders as of the record date shall have the option to receive their portion of the property dividends in cash. Shareholders who did not specify a preference between shares of ARC or cash, will receive cash.
The dividends (whether distributed in shares of ARC or in cash, as an alternative) is subject to shareholders' and relevant regulatory approvals, and will be distributed net of the applicable final tax required to be withheld by Macay.
Abacus Securities Corporation said that, “in all likelihood, management will apply for ARC's listing by way of introduction with the exchange.”
Initial listing by way of introduction refers to an application for listing of shares of stock at the PSE without first having to undertake an initial public offering.
Listing without undertaking an IPO is allowed for firms whose shares are already widely-held (meeting a minimum number of shareholders) that their adequate marketability when listed can be assumed, or when listing in an exchange or public offering is mandated by law or by the Securities and Exchange Commission or other government agencies, in the exercise of their powers under the law.
The PSE also requires firms that list by way of introduction to conduct a follow-on offering of its shares to the public within one year from its listing date.