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Contemplated Issuance of New SPNEC Stocks Will Dilute Minority by 6.25

(Source: PICC) The last IPO in 2021 Solar Philippines Nueva Ecija Corp. (SPNEC) has decided to increase the ownership hold of its parent company Solar Philippines Inc. (SPI) after its board approved the increase of the company’s authorized capital stock to 50 billion shares from 8 billion shares. The move increases the authorized capital stock by at least 6.25 times, diluting its other shareholders at roughly the same fold. This will also effectively reduce the effective value of its shares in the market to P0.24 based on its 52-week high price of P1.50. The share-swap will add P4 billion in additional capital to SPNEC. At the current public float of 29.54%, SPI owns 70.46% of SPNEC. With the planned increase of capital stock issues, SPI ownership of SPNEC is expected to increase to an approximate range of 80.0 to 83.75 percent. With the SPNEC stock growing in value from its par of P0.10 to P1.50 at its highest on 28 December last year, its estimated ownership of 57.2 billion shares

PNB Distributes Stock Dividends on an Untraded Company

Publicly listed Philippine National Bank (PSE: PNB) disclosed on 28 December 2021 the distribution of stock dividends representing shares of an untraded holding company Philcomsat Holdings Corporation (PSE: PHC). PNB shareholders before 13 May 2021 will receive 0.156886919 shares of PHC for every 1 share of PNB held. However, records in PSE Edge indicate that PHC has not been traded since 4 January 2021. The company also has not declared any dividend at least in the last fiscal year. This means that PNB investors will be effectively buying into PHC without being able to sell these shares or receive any PHC dividend from it. In PHC’s 2020 Annual Report (SEC Form 17-A2020), PNB is not among the top 20 stockholders of PHC, indicating that these shares might have been accumulated by PNB from the conversion of PHC loan with PNB because it is unlikely that PNB bought it from the stock market in the last 12 months. (Sources: PSE Edge, PHC SEC Form 17-A2020)

ACEN Continues Shedding Non-Renewable Assets

Through share swaps, ACEN Corp. (PSE: ACEN) continues to effectively transfer its non-renewable energy assets to its non-renewable energy subsidiary ACE Enexor, Inc. (ACEX) in its bid to become a fully renewable energy producer and the largest in the Philippines. In its 3 January 2022 disclosure with the PSE, ACEN transferred its 100% interests in Palawan55 Exploration & Production Corporation, Bulacan Power Generation Corporation, and CIP II Power Corporation, and 17.13% interest in One Subic Power Generation Corporation to ACEX for 339,076,058 newly issued common shares. This increases ACEN’s ownership share of ACEX from 75.92% on 15 July 2021 to 89.78% after these swaps. Consequently, publicly owned shares reduce from 23.66% to 10.04%. ( Sources: PSE Edge)

Shakey's Pizza Acquires Potato Corner

Pizza maker and chain restaurant owner Shakey’s Pizza Asia Ventures, Inc. (PSE: PIZZA) disclosed to the Philippine Stock Exchange the acquisition of food kiosk operator Potato Corner, a company that Jose P. Magsaysay, Jr. founded in 1992. (Read the full report from Business World ) Po family’s holding company Century Pacific Group, Inc. owns 50.36% of PIZZA together with venture capitalist Arran Investments Pte. Ltd. (16.81%) and JE Holdings, Inc. (9.05%), as of 13 October 2021. Public investors own 23.57% of PIZZA. (Source: PSE Edge)

Century Pacific Food, Inc. (PSE: CNPF) finalized the acquisition of LIGO Sardines Philippines, the owner of the popular canned tuna brand LIGO. The disclosure made to the Philippine Stock Exchange on 24 December 2021 mentioned the acquisition of the brand assets and intellectual property associated with the manufacturing of the brand’s product line. (Read the full report in Rappler.com ) CNPF is 68.72% owned by the Po family through its holding company Century Pacific Group Inc., as of 12 October 2021. Almost a third (31.22%) of the company belongs to public investors. (Source: PSE Edge) LIGO is acquired from A. Tung Chingco Manufacturing Corp. (Read the full report in Business World )

MEDIC, The Worst-Performing IPO in the Philippines in 2021

Critical equipment may have lost its appeal to investors less than two years after the first case of COVID-19 was identified in the Philippines. Consequently, when the Villar family-owned Medilines Distributors Incorporated (PSE: MEDIC) conducted its IPO on 4 November 2021, as the second to the last IPO of the year, it became the worst performing IPO in 2021. On the first day of public trading at the PSE, its price declined 30.0% to a day low of P1.61 from its IPO price of P2.30 per share. Although the Co family's newly acquired and renamed The Keeper Holdings, Inc. (PSE: KEEPR) performed worse, plunging 31.3% on its first trading day on 19 November 2021, the market offering was a Follow-On Offering, which technically an IPO. KEEPR is majority (77.54%) owned by Cosco Capital Inc. (PSE: COSCO), the family's publicly listed investing holding company. Its public ownership percentage is 20.82% as of 18 November 2021. (Sources: PSE Edge)