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Ferronoux [FERRO halted] [link] will be halted for the first hour of trading to allow investors the opportunity to digest the latest news about the series of transactions that will result in the backdoor listing of Eagle 1 Landholdings (Eagle1), which owns the property under the Okada Manila complex. As was contemplated as a possibility by the parties back when the Themis Group private placement was announced in December, the latest disclosure by FERRO indicates that Eagle1 will take the largest resulting stake in FERRO by way of a property-for-share swap that will see Eagle1 exchange three parcels of land beneath the Okada Manila complex in exchange for 918 million common shares of FERRO, valued at P4.70/share (~P4.3 billion total). FERRO also disclosed at the close of trading yesterday that it received notice from Themis Group of its intention to conduct a tender offer to acquire up to ~128.29 million common shares at a tender offer price of P2.22/share.
MB bottom-line: Just like the AsiaBest [ABG suspended] tender offer, we’re still waiting on the full Tender Offer Report that needs to be submitted to kick this whole process off. FERRO also noted that it will conduct a mandatory follow-on offering within one year of the completion of the Eagle1 property-for-share swap, which hasn’t been completed yet, only approved by the FERRO board. It will be interesting to see the reaction to the Tender Offer Report, since the market value of FERRO has been about double the highest price mentioned in the process so far (the swap share price with Eagle1) and about three times the placeholder tender offer price.
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