{"id":324017,"date":"2023-07-13T00:34:56","date_gmt":"2023-07-12T16:34:56","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324017"},"modified":"2023-07-13T00:52:02","modified_gmt":"2023-07-12T16:52:02","slug":"hlcm-holcim-tender-offer-2","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/hlcm-holcim-tender-offer-2\/","title":{"rendered":"To subscribe or not subscribe to HLCM’s tender offer?"},"content":{"rendered":"\n

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

Offer price presents attractive upside<\/strong><\/p>\n\n\n\n

As there are no consensus forecasts for Holcim Philippines, Inc. (HLCM), we opted to estimate the company\u2019s value based on its TTM EBITDA and the median EV-to-EBITDA of its regional peers in Asia. Upon getting the benchmark multiple of 7.52x, we then multiplied this to the TTM EBITDA (P3.87 Billion) in order to get the company\u2019s EV of P29.07-Bn. After further deducting HLCM\u2019s leases and adding back any residual cash, we arrived at an equity value of P4.63\/sh. <\/p>\n\n\n\n

Relative to this estimated value, the tender offer price presents an attractive premium of over 15%. Furthermore, we note that upside looks even more enticing at 37.7% when compared to the stock\u2019s last traded price of P3.87\/share. <\/p>\n\n\n\n

Our View: <\/strong>Given the hefty returns that could be had, we would therefore recommend that investors subscribe to the tender offer. Interested participants should continue to await further updates from the PSE however, as trading in the stock was suspended last June 29.<\/p>\n\n\n\n

Following Holderfin B.V.\u2019s acquisition of 594.95-Mn HLCM common shares, its collective ownership alongside its two affiliates amounted to 94.95% of HLCM\u2019s total common shares. Given that public ownership has now fallen below the required float level, Holderfin will be initiating a tender offer which will take the company private. It will be looking to acquire a total of 325.58-Mn common shares, which is essentially the entirety of the remaining public float, at a price of P5.33\/sh. The tender offer period will start today on July 10, 2023, and will last until 12nn of Aug. 30, 2023.<\/p>\n\n\n\n

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<\/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":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-324017","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\/324017","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\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=324017"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/324017\/revisions"}],"predecessor-version":[{"id":324020,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/324017\/revisions\/324020"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=324017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=324017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=324017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}