D&L Industries Inc. (DNL) on Monday said it will not extend the period of its tender offer to acquire the remaining shares of its affiliate Chemrez Technologies Inc. that it does not own after initial indications showed that it will own over 90 percent of the firm after the transaction.
The company said that it will end its offer on Friday, October 3.
DNL Executive Vice President and Chief Finance Officer Alvin Lao said that from the company’s 34.7-percent ownership of Chemrez, it will exceed 90-percent ownership of the firm after the offer.
“While we are happy with the response of the public to the tender offer, we still hope to acquire all shares of Chemrez. Hence, we urge the remaining minority stockholders of Chemrez to seize this opportunity to fully realize the profits from their investments,” Lao said.
DNL earlier this month said it is acquiring all of the issued and outstanding capital owned by other minority owners of Chemrez at P6 per share.
Chemrez earlier expressed its intention to voluntarily delist from the stock market should its public float fall below the Philippine Stock Exchange’s minimum 10-percent requirement following the completion of the tender offer.
Delisting is expected to result in reduced liquidity for the shares as well as higher transaction costs associated with dealing shares of a private company.
From a traditionally resin and powder coating-based company, Chemrez has transformed its portfolio based on the so-called green-chemistry principles. The Lao family also established Chemrez but sold a significant chunk of its shares to the public over the years.