source: http://www.beerandbrewer.com
Spotted this news from inquirer.net regarding the de-listing of San Miguel Corporations(SMC) brewery unit, San Miguel Brewery Inc.(SMB) due to its failure to maintain the required minimum public float of 20%.
Below is an excerpt of the news:
San Miguel Brewery delisting from PSE, sets tender offer at P20 each
By Doris C. Dumlao
Philippine Daily Inquirer 1:43 pm | Monday, February 18th, 2013
MANILA, Philippines—Diversifying conglomerate San Miguel is delisting flagship San Miguel Brewery Inc. from the local stock market and buying back minority shares at P20 per share.
SMB is the largest company to delist from the PSE in recent years. A partnership between San Miguel Corp. and Japanese beer giant Kirin, SMB has a market capitalization of P451.53 billion.
In a notice to stockholders published on Monday, SMB said its board had approved the voluntary delisting of the company from the stock exchange as well as a tender offer to buy back 94.24 million shares – representing the 0.61 percent public float.
The tender offering priced at P20 per share will start on March 4 and end on April 3 this year.
The beer-maker was last traded on the PSE at P29.30 per share on Dec. 28.
Also found this news from Bloomberg regarding the delisting of SMB:
It is one of the inevitable situation with SMB being more of a joint venture between SMC and Kirin Brewery of Japan. According to the disclosure made my SMB to the SEC(click here to view disclosure) SMC owns 51% while Kirin Brewery owns 48.39% of the total outstanding shares thus failing to meet the required 20% minimum public float for listed company.
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Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Learn more about Louis and his financial freedom advocacy here.
That’s why it’s VERY important to make extensive due diligence before buying a stock.
Last Aug 2012, COL already dropped the bomb that SMB was planned to be delisted by mother company SMC.
That time, SMB was still trading at 34/sh before it dived down to 22/sh at the end of 2012.
Investors should’ve already made their exits then.
This news is just an FYI for those who “missed” it (or should I say, for those who failed to make due diligence).
Great topic bro! I’ll also be posting this in my blog, but looking at another angle. Will be linking back here!
Thanks Carlo. Yes it’s too late for those who bought it at that level and only to exit at 20 per share.
what will happen to those shareholders that wasn’t able to tender their shares upon the given date of SMB? Will they still be able to get back their money or at least what’s left of it?
just curious…
Good question Malou!
Owners of SMB has the option to sell their stock to SMC for only 20 per share which is the tender offer price (yes its really sad what if they bought the stock at 25 before) or they can keep on holding it. Holding such shares makes them a minority stockholder. Since such shares are not listed in the stock exchange, selling it outside or through over-the-counter will not benefit from the 1/2 of 1% stock transaction tax and a additional payment for the documentary stamp tax will be incurred.