Eagle Cement Corporation has gained the approval of its shareholders to delist from the Philippine Stock Exchange (PSE). According to the company, not one shareholder voted against the proposal.
“Therefore, as stated in the Definitive Information Statement distributed in relation to such request for stockholders’ approval via written assent, the voluntary delisting of the corporation from the PSE has been approved by the stockholders as of the date hereof,” Eagle Cement said in a statement.
The shareholders represent a total of 4.6bn shares, accounting for around 92.27 per cent of the total outstanding and listed shares of Eagle Cement. The delisting is related to San Miguel Corp’s (SMC) acquisition of 88.5 percent of the listed cement manufacturer for PHP96.8bn (US$1721m), reports The Philippine Star.
The planned acquisition has triggered a mandatory tender offer as Eagle’s public float falls below the minimum requirement. Eagle Cement is the listed cement company owned by the Ang family while SMC is the diversified conglomerate headed up by Ramon Ang. SMC has now commenced the tender offer for 11.5 per cent of common shares in Eagle Cement held by minority shareholders.
The acquisition of Eagle Cement is aimed at strengthening SMC’s presence in the cement sector. SMC is hoping to close the transaction by the end of 2022 or in the first quarter of 2023, depending on regulatory approvals.
In the first half of 2022, Eagle Cement reported revenue of PHP13.7bn, up from the PHP11bn reported in the same period a year earlier. Net income came in at PHP3bn compared to PHP3.7bn in the year-ago period. Based in Bulacan, Eagle Cement sells under the brands Eagle Cement Advance and Eagle Cement Exceed while its bulk cement is sold as Eagle Cement Strongcem.
