Belle Corp. sets tender offer price and period for PLC delisting

BELLE CORP.’S board has set the tender offer price and period for the voluntary delisting of subsidiary Premium Leisure Corp. (PLC).

PLC’s tender offer price is set at 85 centavos per share, with the tender offer period scheduled from March 22 to April 24, Belle Corp. said in a regulatory filing on Wednesday.

As of Wednesday, PLC has a public float level of 20.1%, slightly above the 20% requirement, data from the Philippine Stock Exchange (PSE) showed. The company has 31.22 billion outstanding shares. 

The payment and settlement date for the shares to be tendered will be from April 25 to May 9.

The company tapped BDO Securities Corp. as the agent for the tender offer.

The offer price was issued following a fairness valuation report by First Metro Investment Corp.

The delisting rules of the PSE indicate that the tender offer price is determined based on the higher value, either the highest valuation derived from the fairness valuation report or the volume-weighted average price of PLC shares for one year prior to the posting date of the disclosure on PLC’s board approval of the delisting move.

“First Metro, using various valuation methodologies, considered that PLC is fairly valued at between the 60 centavos to 85 centavos per share. On the other hand, the one-year volume weighted average price of PLC is at 60 centavos per share,” Belle Corp. said.

The PSE’s delisting rules also stipulate that the party proposing the delisting of a listed company must demonstrate that it has acquired at least 95% of the outstanding capital stock.

“For this reason, Belle’s tender offer for the shares of PLC will be deemed withdrawn in the event that the required acquisition of at least 95% of PLC’s outstanding capital stock will not be secured,” the company said.

The board of Belle Corp. approved the conduct of a tender offer on all of PLC’s outstanding common shares on March 11.

Belle Corp. is engaged in integrated resorts business. It is one of the portfolio investments of Sy-led conglomerate SM Investments Corp.

Meanwhile, PLC has a stake in the City of Dreams Manila integrated entertainment and gaming complex in Parañaque City. It also has a 50.1% stake in listed Pacific Online Systems Corp. that leases online betting software and equipment to the Philippine Charity Sweepstakes Office for lottery operations in Visayas and Mindanao.

Ahead of the announcement of the tender offer price, Belle Corp. and PLC both filed for a voluntary trading suspension on their shares, which is set to be lifted on March 21 at 9 a.m. — Revin Mikhael D. Ochave