ALT board approves buyout plan of Philab for P500M
PHILAB Industries Inc. is firming up its backdoor listing on the Philippine Stock Exchange (PSE) via the publicly listed Alterra Capital Partners Inc. (ALT) in a P500 million buyout plan.
In a disclosure to the PSE, ALT said its board of directors on Friday approved a 100 percent buyout covering 361,390 shares for P500 million. A definitive share purchase agreement has yet to be signed by both parties.
The PSE said in a separate note that absorbing Philab is classified as a backdoor route to getting listed on the exchange.
“After a review of the relevant disclosures filed by ALT, the exchange deems that the above-mentioned transaction is covered by the exchange’s Rules on Backdoor Listing,” the PSE said, indefinitely suspending the trading of ALT shares starting on Friday.
A trading suspension on ALT’s shares will give the investing public time to absorb the corporate changes.
A backdoor listing happens when a company buys a controlling stake in a listed firm usually not operating—to enter the stock market.
Last August, ALT disclosed its majority stakeholders sold their 67 percent stake in the listed company to Philab President Hector Thomas A. Navasero and Philab subsidiary Genomics Inc. for P362.324 million.
Earlier, ALT said the Philab group aimed to use the listed firm as a vehicle to construct a genomics BPO hub for Genomics Inc.
Formerly iRipple Inc., ALT has been undergoing changes in ownership and purpose since 2014 when the company sold all its assets to Movemento Inc., turning the company into a holding firm. In March 2015, 89.49 percent of the firm was bought by businessmen Conrado Rafael C. Alcantara and Alfonso G. Anggala for the purpose of backdoor listing.
Alcantara and Anggala held the 67 percent of ALT that was transferred to the Philab group in August.
The company was behind Barter Merchandise Management Solution, a locally-developed software solution designed for merchandising operations. It was also an authorized reseller of IBM and HP servers and POS equipment, Epson printers, and Symbol-Motorola scanners.