Prospective LMG buyer withdraws tender offer

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NEWMANHOLDINGS, Inc. is withdrawing its tender offer report, submitted to the Securities and Exchange Commission (SEC), for a stake in LMG Chemicals Corp., citing “unforeseen” events beyond the control of the parties.

“In relation to the previous disclosure of September 12, 2017 as to the termination of the Share Purchase Agreement (SPA) between the company and Newmanholdings Inc. for the proposed acquisition of 66,060,746 common shares of LMG Chemicals, this is to inform you that Newmanholdings is withdrawing the Tender Offer Report it submitted to the SEC on June 16, 2017 including any supporting documents in relation thereto,” Chemical Industries of the Philippines, Inc. (Chemphil), which owns LMG Chemicals, said in a disclosure to the Philippine Stock Exchange on Friday.

“Due to certain unforeseen events beyond the control of the parties, the required tender offer has not yet been completed and Newmanholdings is unable to confirm and undertake to the Corporation when such tender offer shall be completed,” it added.

As a result of the termination, the corporation has decided to terminate the agreement.

Last May 16, Chemphil agreed to sell its 66 percent share in LMG to Newmanholdings for a total consideration of P379.03 million, or at P2.97 per share.

Newmanholdings said at the time it believed LMG was a widely prospective backdoor-listing vehicle.

LMG is a listed firm engaged in manufacturing and distributing industrial chemicals, which includes caustic soda, sulfur, among others.

Newmanholdings is a holding company that, through its subsidiaries, manufactures chemical products such as sulfuric acid and sulfur flakes.

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