SPLASH Corp., maker of local cosmetic products and owner of Barrio Fiesta Manufacturing Corp., on Monday announced its decision to delist from the local bourse in a bid to protect its business plans from its competitors.
In a disclosure to the Philippine Stock Exchange, the company said its Board of Directors in a meeting on Monday unanimously voted to delist Splash.
The decision was made after taking into account the “low trading volume for the last two years as well as the response of the investing public to [its]ongoing buy-back program,” the company said.
Splash said the delisting is likewise in line with its “desire to avoid telegraphing its business plans to [its]competitors.”
The company is known for its whitening products like Maxi-Peel, Extraderm, and Skin White, its hair care products such as Kolours and Vitresse, and its coconut oil-based beauty products like Biolink and Theraherb VCO.
Splash said that it would conduct a tender offer for all the remaining 158.45 million publicly listed common shares representing some 26.66 percent of its outstanding common stock.
The tender offer is priced at P3.10 apiece. The date of the offer has yet to be announced.
SPH was last traded at P3.01 per share.
A tender offer is a process by which a corporation gives its minority shareholders the opportunity to exit from the company as minority shares would be extremely difficult to sell if sold individually.
Splash ventured into the food business in 2011 by buying 80 percent equity in Barrio Fiesta Manufacturing Corp. The following year it also purchased Moondish Foods Corp.
SPH has established subsidiaries in the Philippines and abroad to manufacture and distribute its products in these countries.
Its international subsidiaries include P.T. Splash Cahaya in Indonesia; Splash H&B Sdn Bhd in Malaysia; Splash H&B Ltd. in Nigeria; and Splash Global Pte. Ltd. in Singapore. The company also has a representative office in Vietnam.