Active Alliance minority owners snub Razon's offer
MANILA, Philippines - None of the minority shareholders of listed hotel and casino firm Active Alliance Inc. (AAI) availed of the heavily discounted tender offer of Razon-led Prime Metroline Transit Corp. (PMTC).
About 75% of AAI, which is set to change its name to Bloomberry Resorts Corp and become the listed vehicle of businessman Enrique Razon Jr's grand casino project at the Pagcor City in Manila, was bought by the port magnate for P200 million in November 2011.
In keeping with regulatory requirements, PMTC offered to buy the remaining 20 million shares held by minority shareholders for P3.33 each, a 93% discount from the closing price of P51.
AAI's tender offer agent First Resources Management and Securities Corp. informed the exchange that "Based on feedback from inquiring parties, this lack of interest is due to the significant difference between AAI's market price and the tender offer price offered by the company."
PMTC owns Sureste Properties Inc., which in turn owns Bloomberry Resorts and Hotels Inc. Sureste owns the hotel project while Bloomberry owns the casino project being constructed at the Pagcor City in Manila.
Bloomberry is one of four groups that have been granted state licenses to build hotels and casinos in the area. AAI will also amend its Articles of Incorporation to reflect the change in its primary purpose from that of a manufacturing firm to a holding company and increase its capitalization from P120 million to P15 billion.
AAI temporarily ceased manufacturing printed circuit boards for electronic devices in 2003 due to uncertainty in the industry. PMTC, on the other hand, was incorporated in March 2010 to engage in the railway transit business, but this failed to take off. - Rappler.com