{"id":323963,"date":"2023-07-07T13:28:36","date_gmt":"2023-07-07T05:28:36","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323963"},"modified":"2023-07-07T13:28:37","modified_gmt":"2023-07-07T05:28:37","slug":"mpi-delisting-offer-price","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/mpi-delisting-offer-price\/","title":{"rendered":"MPI sweetens delisting deal with P5.20 offer price"},"content":{"rendered":"\n

Analysis and Recommendation<\/h2>\n\n\n\n

Metro Pacific Investments Corp. (MPI) disclosed to the exchange the formal Tender Offer from the consortium of bidders which showed a 12.3% improvement in the tender offer price from the initial P4.63\/share to P5.20\/share. Likewise, the Fairness Opinion and Valuation Report (FOVR) issued by Unicapital Inc. was uploaded with the disclosure and we provide a snapshot of the range of values that the PSE-accredited appraiser came up with.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Using this table of values, MPI\u2019s formal Tender Offer price of P5.20 is a 1.9% premium over the highest value derived by Unicapital of P5.10 and a 33% premium over the highest VWAP of MPI prior to the initial notice back in April 27, 2023.<\/p>\n\n\n\n

Our View: <\/strong>The true essence of a compromise. The sweetened offer price is still 17% below consensus estimates but a 12.3% premium over the initial offer and is almost a 4-year price high (dating back to October 14, 2019) for the stock. <\/p>\n\n\n\n

As investors and entrepreneurs, we want to maximize our profits as much as we can but we also know that \u201csomewhere in between\u201d resolves the conflict between all profit maximizing agents. The key therefore is in determining that \u201cin-between\u201d area.<\/p>\n\n\n\n

Assuming you have decided on an annual investment plan to buy MPI at the end of the year since 2009, your average today is P4.43. If you only started your annual investment plan in 2015, your average today is P4.80. Finally, the mid-point of MPI\u2019s 17 years of being a publicly traded company is P4.55. <\/p>\n\n\n\n

Given these values the higher tender offer price of P5.20 will get you out with a profit, although not at a level that would have covered inflation throughout those years. Assuming shareholders take the deal, MPI will end the year with a gain of 52% to be the best performing PSEi member in 2023 before it gets taken out.<\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-323963","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=323963"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323963\/revisions"}],"predecessor-version":[{"id":323966,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323963\/revisions\/323966"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=323963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=323963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=323963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}