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Villar Group prepares Starmalls’ tender offer

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Vista Land & Lifescapes Inc. said it will launch in January a tender offer on the remaining shares it does not own in Starmalls Inc. to consolidate the Villar Group’s residential and shopping mall businesses.

The tender offer period on the remaining 11.75 percent, representing 743.29 million Starmall shares held by minority investors, will start on January 4, 2016 and end on February 15, 2016.

The tendered shares are to be crossed through a block sale on February 25, 2016.

Vista Land’s tender offer is in compliance with provisions of the Securities Regulation Code, after signing on November 10 an agreement with Starmalls’ major shareholder, Fine properties Inc., to acquire an 88.25-percent stake in the company worth P33.5 billion.

Vista Land and Starmalls are both principally owned by the Villar group.

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Fine Properties, meanwhile, committed to invest 97.5 percent of the P33.5-billion purchase cost into Vista Land by subscribing to approximately 4.6 billion new Vista Land shares.

As a result of the transaction, the Villar Group will increase its stake in Vista Land to 67.45 percent from 54 percent.

The acquisition will make the company the fourth leading integrated property developer in the country aftrer SM Prime Holdings Inc., Ayala Land Inc. and Megaworld Corp.

The purchase will also hasten the rollout of the Villar Group’s projects and and enable it to form joint venture partnerships with other real estate developers.

Vista Land president Paolo Manuel Villar earlier said he expected the company’s rental income to be a significant contributor to the group’s total sales following the transaction.

Starmalls owns two BPO commercial centers and 12 shopping malls with a total gross floor area of 509,000 square meters. Five malls are currently under construction and are slated to open in 2016.

Villar said the company identified 100 hectares out of 600 hectares of land under its existing land bank for potential Starmalls projects.

Vista Land said it had no plans to delist Starmalls after conducting a tender offer.

Depending on the result of the tender offer, the public ownership of Starmalls may fall below the minimum requirement of 10 percent. If the company fails to comply with the 10 percent minimum public ownership requirement of the PSE, an involuntary delisting procedure may be initiated against the company.

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