YEHEY! Corp. has made a full disclosure of its takeover by a new group of stockholders. The new majority stockholders even informed the public of what they intended to do with the company.
Except for a question that I raised at the end of this piece, which I addressed to the company’s lawyer, everything that the public needs to know about the company’s new majority owners has been disclosed.
‘The bidder is looking into the possibility of making an additional investment in and acquiring and infusing assets into the company to fund further business prospects for the company, subject to favorable market conditions,” a Yehey posting said, describing the plan of the new owners.
The same filing also disclosed the new group’s plan to use the company for “the backdoor listing of potential business partnerships, which may contribute revenue growth for the company.”
Perhaps, the “backdoor listing” and the “infusion of additional assets” were what prompted certain stockholders of Yehey to hold on to their shares. The offered price of P1.558 per share would be too small for them to part with their Yehey shares.
Despite a deficit of P39.67 million as of June 30, 2015, Yehey hit a 52-week high of P4.90 on Oct. 13 from a low of P2.20 on Sept. 11. That’s a huge a gain of P2.79 per share, or more than 100 percent, in one month and two days.
With that kind of a stock performance, wouldn’t it be more profitable for the public to wait for Yehey’s “follow-on offering or public offering” before selling shares?
Yehey’s new owners
For the information of the public, here are details of the takeover of Yehey by the new majority stockholders:
Valentino C. Sy is the chairman of the nine-man board of Yehey. The other regular directors are Edmundo Marco P. Bunyi Jr., Ignacio B. Gimenez, Jose Carlos P. Arellano, Willy N. Ocier, Joseph L. Ong, and Wilson L. Sy. Two are independent directors: Gregorio T. Yu and Antonio R. Samson.
Sy is also chief executive officer (CEO), while Arellano is president of the company.
On Oct. 23, Yehey reported the acquisition by Socorro P. Lim of 46.53 million Yehey shares, equivalent to a 16.74 percent stake in the company. A day earlier, Yehey disclosed the acquisition by Alfonso Yap Go of 93.061 million Yehey shares, or a 33.48 percent interest. Combined, the two buyers of Yehey shares represent 50.22 percent of Yehey’s outstanding capital.
Finally, one of the PSE postings of Yehey on Oct. 16 showed the sale by Vantage Equities Inc. of 186.122 million Yehey shares, or 66.95 percent of 278 million outstanding shares. The posting also identified Lim and Nathaniel C. Go as the nominees of Go. Like Lim, Nathaniel C. also holds 46.53 million Yehey shares, or a 16.74 percent stake.
As nominees, Lim and Nathaniel C. are only record stockholders of Yehey, which means they hold the shares in behalf of the real or beneficial owner or owners.
In an acquisition report, Yehey said the buyers paid P290.35 million for 186.122 million Yehey shares, which translates to P1.558 per share. Their tender to buy the shares held by other stockholders had failed to attract sellers.
Incidentally, here is a question for lawyer A. Bayani K. Tan: What has the following PSE posting got to do with Yap Go’s acquisition of Yehey shares?
In a special meeting on Oct. 21, Yehey reported the approval by the board of “an advance and loan to Shareholder for the amount of P254 million, to be repaid within 12 months at the rate of 6% per annum.”
Perhaps, Atty. Tan could provide the identity of the “Shareholder”?