RAMON Ang-led conglomerate San Miguel Corp. (SMC) announced it has closed its P97-billion acquisition of Eagle Cement Corp. (ECC).
In a disclosure to the Philippine Stock Exchange, Eagle Cement said the purchase was accomplished after its board of directors and related party transaction committee authorized the acquisition of 88.5 percent, or 4.4 billion shares, of ECC.
Eagle Cement’s principal shareholders include Ang and his children, John Paul Ang, Eagle Cement president and chief executive officer; Chief Finance Officer Monica Ang-Mercado; and their holding company, Far East Holdings Inc. (FEHI).
Both ECC and SMC said that Ramon Ang and John Paul Ang “did not participate in the meeting of the respective boards for the approval of the sale by each party for the acquisition of the other.”
SMC added that the basis for the negotiation and determination of the sale price was the valuation undertaken by an independent firm using global valuation standards. San Miguel Equity Investments Inc. was the buyer of record in share purchase agreement.
The transaction will be paid in cash through a schedule, mutually agreed upon by SMC and ECC.
SMC intends to file a request for exemption relief with the Securities and Exchange Commission to allow the tender offer to the minority shareholders to commence after approval by the Philippine Competition Commission.
“The acquisition of ECC offers a complementary approach to the current investment strategy of SMC in the cement industry, will increase its foothold in the cement business and provide the opportunity to implement its plan to expand its cement business,” said SMC.