Pacifica Confirms Reports on Unido Capital’s Tender Offer

MANILA, Philippines – Pacifica, Inc. (PSE:PA) clarifies the report published on Businessworld Online, pertaining to its plan of a backdoor listing or reverse takeover of Kuya J, entitled “Grooming Kuya J”.

In a disclosure to the Philippine Stock Exchange (PSE) filed on behalf by Cristina Palma Gil-Fernandez, PA Corporate Secretary and Corporate Information Officer, the company confirms the tender offer filing of Unido Capital Holdings, Inc. from January 6 to February 3, 2017 for a tender offer price of P0.007 per share.

Based on the Biz Buzz column report, Unido is planning to buy 36.52 percent of the outstanding capital stock of Pacific from Mikro-Tech Capital, Inc. and 9th Kingdom Investments Corp. Once the acquisition is done, the current stake of its affiliate, Iholdings, Inc., will own Pacifica’s 64.17 percent outstanding interests.

However, there is no certain plan at present regarding the backdoor listing or reverse takeover in relation to Kuya J or Pacifica.  The firm also clarifies that there is no initial or definitive deal settled or carried out about the matter.

According to the news report, Kuya J’s Lowell Yu is considering to take 64.17 percent ownership in Pacifica, which is considered to be a dormant company for exploring minerals.

Yu’s Unido, based on a PSE report last week, submitted a tender offer to Pacific shareholders at a price of P0.007 per share. Unido is considering to buy 14.33 billion PA common shares, which is composed of 35.83 percent of interests presently owned by the public. This year on February 3, the company will hold the tender offer at noon.

The Businessworld Online news added that Unido is taking into consideration using PA as a key for a reverse takeover by a current company concern, which may support its revenue increase. Nonetheless, the news added that there is no definitive action disclosed yet.

The news also reported based on their information source that Yu is probably acquiring Pacifica as a future backdoor listing solution for the restaurant chain, Kuya J. The Cebuano food place is quickly establishing a name in the Philippines for the past couple of years.

It was speculated that the food chain would go public once it reaches a network of 100 restaurants. Presently, Kuya J has 60 branches, showing the possibility is nearing.

Lowell Yu also is the standing Chairman of Pacifica, Inc.

Pacifica, Inc. was incorporated on September 2, 1957. The company is committed to exploring, drilling, and exploiting gas, oil, and other explosive substances. From an exploration company, Pacifica converted into a holding company on October 6, 2000, after obtaining approval from the Securities and Exchange Commission (SEC). Nonetheless, restrictions on financial assistance and scheduling made PA incapable of pursuing bio-ethanol fuel and real estate businesses.

About the Author
The Stock Signals Philippines is the online news media arm of Equilyst Analytics. Inc., an SEC-registered stock market consultancy firm in the Philippines that guides Filipinos on long-term investing and short-term trading and offers mentoring services.
  1. Len Reply

    Hi! Question, I’m wondering what will happen to my PA shares after the tender offer period? Are they still going to be traded in the market or they will be delisted? I thought that once a company announces a tender offer, the price would be at a premium? Why was that PA was only offering .007 when its market price ranges from .04-.05? Thank you

    • Stock Signals Philippines™ Reply

      Hi, Len! Thank you for reaching out. The offer of 0.007 is too low. You are not obligated to avail of the tender offer. In fact, if you would want to get rid of your shares, it’s much better to sell them in the open market. Yu is buying your shares (tender offer) for peanuts and if the talk about Kuya J doing a backdoor listing is to materialize, then maybe they really are trying to buy you out cheap. After the tender offer and you did not avail of it nor sell your shares in the open market, your shares will still remain with you. About the issue of delisting, the company will only delist if the minimum public float isn’t met. Since the offer price is too low, we doubt many will tender the shares and thus, the float will still be above what is required.

      We hope our response helps.

      Regards,

      Stock Signals Philippines

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