SMC voluntarily halts trading of shares
SAN MIGUEL Corp. (SMC) has voluntarily submitted itself to a trading suspension following its subsidiary’s $1.9-billion acquisition of the Masinloc powerplant on Monday.
The trading suspension was implemented starting 9:10 a.m. on Tuesday, and set to be lifted once SMC submits disclosure requirements through Form 5-1 necessary for the acquisition.
Form 5-1 covers the details needed to be disclosed in substantial acquisitions.
“The Company is requesting for a voluntary trading suspension pending the completion of the submission of information through Form 5-1 in relation to the acquisition by SMC Global Power Holdings Corp. of 100% of the shares in Mason-AES Pte. Ltd. which, through its subsidiaries, owns operates the 2x315 MW (megawatts) coal-fired power plant,” SMC disclosed.
A trading suspension is implemented to allow investors to digest material information that may otherwise affect the performance of the company. This further gives the trading public time to decide whether to invest in the company or not.
The affected stocks in the suspension are those with tickers: SMC, SMCP1, SMC2B, SMC2C, SMC2D, SMC2E, SMC2F, SMC2G, SMC2H, SMC2I.
Shares in SMC closed at P108.80 apiece on Monday, down by 1.27% from Friday’s close.
SMC Global Power Holdings Corp., which holds the conglomerate’s investments in the power sector, said it is acquiring the plant after two sets of bids last September and October.
The transaction would bring SMC Global Power’s total installed capacity to 3,693 MW.
SMC Chairman Ramon S. Ang said in an interview on Monday that they have yet to finalize plans for the project, adding the transaction will still be subjected to a review by the Philippine Competition Commission.
SMC saw its attributable profit decline by 19% to P20.89 billion in the first nine months of 2017, amid a 19% climb in revenues to P596 billion.
Aside from power, SMC has core investments in food and beverage, fuel and oil, infrastructure, and food packaging. Earlier this year, Mr. Ang said the company will also foray into electronics manufacturing in the future. —