Filinvest Land Inc. (FLI) said it will have its tender offer for publicly-owned shares between October 7 and November 27, with the tender offer crossed at the Philippine Stock Exchange’s platform by December 9.
Settlement for those that accept the tender offer will be on December 11, the company said.
FLI last month said it is offering to swap publicly-owned shares in the company for Filinvest REIT Corp. shares at a swap ratio of 1 FILRT shares for every 3.11 FLI shares.
“FLI stockholders stand to gain from the offer by benefiting from price appreciation and a stronger dividend yield from FILRT shares,” the company told the Philippine Stock Exchange.
The company is looking to acquire all 1.87 billion shares owned by the public, equivalent to 7.69 percent of the company. FILRT has a public float of 32.11 percent.
FLI said its shares will be exchanged at P1, which is a 56 percent premium to both its 30-day and 10-day volume weighted average price (VWAP). The exchange ratio of 3.11 FLI shares to every 1 FILRT share is based on the 10-day VWAP.
FLI tapped FTI Consulting Philippines Inc. (FTI) independent financial advisor to determine the valuation used in the tender offer.
“FTI opined on 24 September 2024 that, given the range of market values of the tender shares and the range of market values of the consideration shares, the exchange ratio of tender shares to be acquired per consideration share is considered fair from a financial point of view,” FLI said in its report.
“From the perspective of the FLI shareholders, the tender offer provides an attractive exit opportunity at a premium to the current market price. Shareholders also have the opportunity to exchange their FLI shares for FILRT shares, which offer several attractive benefits, including a more stable dividend yield and improved liquidity due to historically higher trading volumes compared to FLI shares. This exchange will not only enhance shareholder value but also align interests between FLI and FILRT shareholders, positioning both entities for future growth opportunities,” it added.
FLI earlier sid that after the tender offer’s completion, public ownership of FILRT will increase to 46.75 percent, broadening FILRT’s shareholder base, and placing it comfortably above the 33.33 percent PSE minimum public ownership requirement for REITs. FILRT public float is currently at 34.48 percent.
FLI said the offer provides shareholders with “a compelling opportunity to participate in REITs, gaining exposure to a portfolio of income-generating properties with the potential for capital appreciation.”
FILRT’s portfolio consists of 17 Grade A and LEED Gold-certified office buildings that feature green and sustainability-themed elements. With over 300,000 square meters of gross leasable area (GLA), 16 of the buildings are located in Northgate Cyberzone in Filinvest City, Alabang. Filinvest Cyberzone Cebu Tower 1 meanwhile is situated at the gateway of Cebu IT Park in Lahug, Cebu City.
“Rounding out the portfolio is 2.9 hectares of land leased to the owner and operator of Crimson Resort & Spa Boracay, bringing the REIT’s total gross leasable area (GLA) to over 330,400 square meters,” FLI said.
FLI declared P1.212 billion in dividends in May, with a dividend yield of 5 percent. FILRT, on the other hand, declared dividends of P1.213 billion in August with a yield of 8 percent in annualized terms.
