• Failed tender

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    Emeterio Sd. Perez

    Emeterio Sd. Perez

    TOSOH Corp. of Japan had wanted 100-percent ownership of Mabuhay Vinyl Corp. (MVC), but its tender to buy out the public who held 162.73 million MVC shares, or 25.777 percent, failed to attract sellers.

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    In an acquisition report, the Japanese company said that of the remaining MVC shares that it did not yet own but offered to acquire, only 83.207 million shares were sold to Tosoh by their public owners, leaving 79.524 million shares, or nearly 49 percent of 162.73 million still in the hands of the public.

    In an acquisition report, the Japanese company said that of the remaining MVC shares that it did not yet own but offered to acquire, only83.207 million shares were sold to Tosoh by their public owners, leaving 79.524 million shares, or nearly 49 percent of 162.73 million still in the hands of the public.

    The question is, why did some stockholders reject Tosoh’s tender to buy them out? No one yet knows the answer.

    Some of the public investors who refused to sell their MVC shares must have seen some positive developments that are yet about to happen. Speculative all this may be, Tosoh and the MVC, which it now controls, should make the necessary disclosures regarding their plans.

    What would Tosoh do with its majority-owned MVC? If it plans to use it as an investment arm in the Philippines, it should say so by informing the public through a posting or postings on the PSE website.

    The trade history of MVC shares from the time Tosoh made the P1.70-per-MVC-share offer until recently, showed the stock’s price remaining unchanged at P1.70, until Aug. 28 and Sept. 2, when the stock dropped to a session low of P1.64 and P1.63, respectively.

    Then, MVC was back up at P1.70 on Sept. 3, only to open down again on Sept. 9 at P1.52, hit a high of P1.61 and closed back at P1.52. On Sept. 14, MVC rallied again, and for the first time breached P2 when it opened at P2.01 and peaked at P2.09. Before that day was over the stock had fallen to P1.78 and ended the session below P2 at P1.90.

    Surprisingly, there was no stopping MVC’s surge. On Sept. 18, the stock shot up to P3.36 at the opening session after previously closing at a high of P3.09.

    Here is a stock that had climbed to a 30-day high of P6.94, a huge jump from its month’s low of P1.52. Yet, no one knows why, and even insiders do not know the reason for MVC’s puzzling ascent. Was it a miracle?

    Yes, MVC went on a miraculous climb that even corporate secretary Ma. Melva E. Valdez did not know what had driven up the stock. When asked about it by Grace M. Calubaquib, PSE’s assistant vice president and head of market surveillance department, Valdez responded with the usual explanation when companies are asked to justify their stocks’ market performance: “Please be informed that the Company is not aware of any material information that could have affected the trading and price of MVC shares…”

    The Japanese-owned Tosoh is lucky to have bought 317.779 million MVC shares at P1.70 apiece. At MVC’s 30-day high of P6.94, it was ahead by P5.24 per share, which translates to a huge paper gain of P1.665 billion.

    Perhaps much luckier are MVC’s stockholders who did not bite Tosoh’s tender of P1.70 per share. But how about the unsuspecting public who had been attracted by the higher price which, before the tender, had been falling? Only the Securities and Exchange Commission could provide the answer.

    Insiders’ trade
    Gervel Inc., the holding company of the Velasco family, took advantage of the market’s fall by buying shares in Republic Glass Holdings Inc. (REG). In a period of three months, it expanded its ownership of REG to a total of 459.668 million shares, or 67.39 percent, as of Sept. 30, 2015 from 458.963 million, or 67.29 percent, as of June 30, 2015.

    Gervel stands for Geronimo Velasco, the family patriarch.

    Within a period of three months, Gervel bought 705,500 REG shares at various price levels on the open market. Its latest posting on the website of the Philippine Stock Exchange showed it acquired 143,000 REG shares at P2.65 each on Sept. 1 and 7,000 REG shares at P2.60 each on Sept. 10.

    (Note. The number of REG shares that Gervel had bought was computed based on the 459,668,445 shares as of Sept. 30 and 458,962,945 shares as of June 30.)

    On Sept. 10, REG traded throughout the session at P2.60, with Gervel as the only buyer of the stock’s total trade volume for the day of 7,000 shares. On Sept. 1, a total of 254,000 REG shares changed hands, of which 143,000, or 56.3 percent, went to Gervel.

    On Oct. 5, REG traded at P2.83 from opening to closing, on volume of 4,000 shares.

    esdperez@gmail.com.

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