PSE and Financial Related Stuff: Philippine Stock Market

Posted: 17 Sep 2016 01:08 PM PDT

Sa dami ng lumalabas sa PSE edge na news about Tender offer. The thing is marami ang hindi nakakaintindi nito. And lately is marami ako natatanggap na PM kung ano ba meaning ng Tender Offer.
So let's talk about Tender Offer.

WHAT IS TENDER OFFER?

- A Tender Offer is an offer to purchase some or all of shareholders shares in a corporation. The price offered is usually at a premium to the market price.
http://www.investopedia.com/terms/t/tenderoffer.asp

*at a premium- simply means pagbenta ng asset or shares na mas mataas sa value or original price. Example binili mo P10 ibenta mo P15, tawag dyan at sold at a premium price.

*hostile takeover- Hostile means, showing or feeling opposition or dislike, unfriendly. Its like saying I want to takeover or have a control whether you like it or not.

So himayin natin si tender offer. Paano ginagawa at paano nangyayari, examples;

*Si Company gusto magbuy back ng outstanding shares nila at magkaron ng shares pa. So magiisue sila ng announcement about a tender offer. Kung si stock mo is trading sa market at P3 at ang tender offer is P3.50, diba mapapabili ka ng madaming shares. Kasi mas mababa ang trading price sa market kaysa sa inaalok ng company, pangita yun. At maaring si shareholder/stockholder is kagatin yung tender offer na yun na ibenta sa tender offer na P3.50.

*Isa pang example, if meron private company or investors na gustong bumili ng shares sa publicly traded stocks. Pwede sila gumawa ng hostile takeover moves. Sabi ni investopedia pwede daw ito kahit without consent of BOD."A privately or publicly traded company executes a tender offer directly to shareholders without the Board of directors (BOD) consent, resulting in a hostile takeover.

Like yun balita ngayon, matunog yung sa $ALT at sobra daming nagtatanong. Kasi ganito ang nangyari naman dun, ang tender offer nila is P1.74 ang nagoffer nyan is si Genomics Inc./Philab. Pero ang trading price sa market ni $ALT is P3.20.

Ano ba yan binarat naman, instead na at the premium ang magiging offer at bentahan, binarat nila ang stock. So ano kaya reason nun, bakit gusto nila magkaron ng shares pero sa mas mababang price nila gustong bumili.

So anyare, nagkaron ng massive panic sa mga stock holders. Iniisip nila na "Ano mangyayari magiging P1.74 ba si $ALT?" Kaya ayun nagkaron ng gap down. So nagbasa po ako sa PSE Edge kaya nalaman ko yun tungkol sa Genomics Inc.

Sreenshot na lang pra mas mabilis lagay na lang natin ang link kapag gusto ng mas details. About Philab.

Philab Chairman is Mr. Navasero

+Geonomics (GINA) basa basa din at research.

http://philab.com/genomics/

*GEONOMICS- the branch of molecular biology concerned with the structure, function, evolution, and mapping of genomes. The genome is the entire DNA content that is present within one cell of an organism.

So clear na yan po.

Pagusapan naman natin si $ALT at yung mga may control nito by shares. Para na akong investigator nito ahh...

COMMON SHARE HOLDERS

*Conrado Rafael Alcantara- 102,784,481 common shares

*Alfonso S. Anggala- 31,752,096 common shares

*Star Alliance Securities Corp.- 74,088,224 common shares

Which equals to 208,624,801 common shares

They are the Selling Share holders

By the way, Outstanding Shares of $ALT in PSE is 311,380,300

*Geonomics Inc & Hector Thomas Navasero

They are the Bidders

The Bidders agreed to purchase 67% of the outstanding capital of the company which is equals to 208,624,801 common shares of the company.

Abay gusto pala nila lahat yun buong shares ng Selling Sharesholders. So sa sarili kong analyze, gusto nilang bihin lahat ng shares na hawak ng Selling share holders, sige ulit ulit ka pa hehe. Napaisip ako at tinignan ko meaning ng backdoor at eto ang sabi.

Backdoor Listing

A Strategy of going public, used by a company that fails to meet the criteria for listing on a stock exchange. To get onto the exchange, the company desiring to go public acquires an already listed company.

Believe it or not, purchasing a public company can be a cost-effective way for some firms to go public.

Investopedia http://www.investopedia.com/terms/b/backdoorlisting.asp#ixzz4KXTnB2nc

Yown, bumibili sila ng shares ng already listed ng company sa PSE by means of $ALT. Am I right over there.. Kasi its either di nila nameet yun criteria ng PSE para malist sa market or tulad ng sabi is mas cost effective daw sya. Speculation ko lang po yan. Pero sabi sa report is, "The Bidders has no definitive plans" etc etc...

Tender Offer period is from 9am of Sept 9- October 10, 2016 12pm, because it needs to be at least 20days. At pwede pa itong maextend, depends if gusto pa nila at kung iapprove ng SEC. Pwed rin naman mangyari na di matuloy ang tender offer, the Bidders have the right to withdraw the tender offer kung hindi mameet yun conditions at satisfaction nila. So I guess clear tayo dun. Naku po,, 118 pages pala itong disclosure ng pdf nila.

**So ganito na lang kung ako tatanungin nyo if ano meron ganito nasa isip ko pero wala itong assurance dala lang ito ng curious mind ko;

a) Genomics/Philab, they are planning to enter PSE by backdoor sa pamamagitan ng $ALT kaya bumibili sila ng shares at halos lahat ng shares na hawak ng Alcantara-Anggala- Star Alliance gusto nila. (Poydipirodipindi...)

b) It's normal na magissue ng Tender offer because they are acquiring more than 50% shares, dahil nakasulat ang napagkasunduan na ipurchase ng Genomics is 67%. And by rules under SRC (Securities Regulation Code) and its Implementing Rules and Regulations (IRR), any acquisition that will results to ownership of over 50% they are required to make tender offer. Kaya yan it's normal na may offer, at may computation sila dyan.

c) Bakit mababa ang tender offer, di ko alam paano kinwenta kasi tamad ako by math kahit kaya ko kwentahin. But sabi nga as per meaning, it will be Cost effective meaning much wiser itong strategy na ito if they want to have a place in the market.

d) pwede di matuloy yan, pwede maprolong ang tender offer period but as of now wala daw sila balak to extend it but they have the rights to extend with approvals from SEC. So although pwede tayo magspeculate di natin pwede bigyan ng assurance yan. Kasi di natin alam ang sure na iniisip nila. Nakasulat nga dun is wala pang definite plans.

e) wala akong $ALT at di ko pwedeng hulaan mga sure na gagawin nila and by the fact na pwedeng hindi matuloy, pwede maging tagilid yan. but the fact also na may deal at agreement sila at nageeffort by this reports and papers it means meron silang plano.

f) ang sureness ko lang dito is maraming ipet at maraming nagpapanic especially newbie kasi di nila alam ano talagang nangyayari at anong meron, baka ang nasa isip din nila is magsasara na ba si $ALT... sabi sa report kapag natuloy ang acquisition nila ng shares posible at talagang pwede naman na gumawa sila ng mga changes sa company, change in board of directors, change in corporate structure etc etc...

g) kung ask nyo ako if Hold or Not, hindi ko sure yan basta binasa ko lang at sinabi yun nasa report nila. trade at your own risk, ano ba sinasabi ng instinct mo at mahirap masisi. if titignan ko sya by chart its a tweezer bottom. Kung sakaling pumasok ako, play ko lang muna at yun lang kasi ang kaya kong irisk by now, till further confirmation by indicators at volume, news and reports are bonus to us.

Kung gusto nyo magtry or risk

yun kaya lang ng sikmura nyo.

Have your Plan.

So bakit gumawa ako ng observation ko about this. Simply because madami nagtatanong sa akin, before di ako nagkainterest dahil wala ako nito. Pero di ko kayang ignore yun mga pm sakin thats why, here it is. Hopefully makatulong po ako sa mga katanungan nyo.

Next time if may mangyari uling tender offer

meron na tayong knowledge.

Knowledge is power.