Keppel Philippines to apply for voluntary delisting

Keppel Philippines [KPH 19.98 suspended]  [link], the past owners of Podium Mall before its sale to BDO [BDO 142.00 unch], have notified investors that the company plans to voluntarily delist. KPH’s parent company, Kepwealth Inc (Kepwealth), intends to conduct a tender offer for KPH and KPHB shares at a price of P27.40/share. KEP’s board of directors approved the application to delist, but the initiative still requires stockholder approval and a successful tender offer by Kepwealth to acquire at least 95% of all issued and outstanding KPH shares. A special stockholders meeting has been scheduled on April 24.

  MB BOTTOM-LINE:  The proposed tender offer price is higher than the highest valuation from its February 13 fairness opinion and valuation report and the volume-weighted average price over the past year. There’s very little actual information on why Kepwealth wants to delist KPH, but that hasn’t stopped speculators from speculating. Some are saying that perhaps Kepwealth is dissatisfied with the market’s valuation of KEP’s shares, and are taking this opportunity to buy the company back at such a depressed valuation. In a related line of thinking, others say that perhaps KPH is planning to raise funds, and would rather raise funds privately at a higher valuation. Either way, KPH is essentially an illiquid stock that only has a single-digit number of trades per day on average, and this delisting felt like it has been in the cards since the sale of Podium to BDO and the subsequent 216% dividend. Back in April 2024, when KPH hit the ceiling after that dividend announcement, I said, “I wonder why KPH is getting so much attention now? Speculators,. mount up!” I was talking about what felt like a march toward delisting, and the unusual activity around the stock as insiders try to front-run that process. It’s such a gross sign when delisting plays are the most profitable game in town.