Ports tycoon Razon takes over Apex Mining
A company run by port magnate Enrique Razon Jr. has taken over Apex Mining Co. Inc. after completing the tender offer to secure additional shares in the mining company.
Apex Mining has notified the local stock exchange that Prime Strategic Holdings Inc. has completed the mandatory tender offer in the publicly listed company where 4,558 common shares were tendered and crossed on March 21 at P1.30 each or a total of P5,925.40.
The transaction increased Prime Strategic Holdings’ stake to 54.75% from 40.32%, as it now directly and indirectly owns 3.4 million common shares of Apex Mining.
As a result, Apex Mining will become a subsidiary of the Razon-led company.
Shares of Apex Mining rose 0.61% to close at 1.63P each on Friday.
Last December, Prime Strategic Holdings launched a tender offer to acquire 2.213 billion shares of common stock held by the public, which ran from February 14 to March 14.
The Securities Regulation Code states that a mandatory takeover bid is triggered if an acquisition results in ownership of more than 50% of the total outstanding equity securities of a publicly traded company.
The offering price of 1.30 peso per share represents a 15.50% discount to the six-month volume-weighted average price (VWAP) and an 8.20% discount to the three-month VWAP of common shares of Apex Mining as of December 27, 2021. .
In April 2018, Prime Strategic Holdings signed separate agreements to buy Lakeland Village Holdings Inc.’s 7.62% share for 73 million pesos and another 6.81% stake from Devoncourt Estates Inc. for 51 million pesos. pesos in the mining company.
Monte Oro Resources & Energy, Inc., another entity controlled by Razon, owns the remaining 8.91%.
Apex Mining posted a consolidated net loss of 136 million pesos in the first nine months of 2021 compared to a net profit of 991.3 million pesos in the same period a year ago.
Consolidated revenues during the January-September period increased by 9% to 5 billion pesos against 4.6 billion pesos.
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