KEPPEL Philippines Properties Inc. (KEP) on Thursday said it was not aware of any undisclosed material information that could have triggered the recent sharp increase in its share price.
In a reply to query from the Capital Markets Integrity Corp., the stock exchange’s market regulation arm, regarding the unusual price increase in Keppel shares to P3.93 from P2.62, the company said it knew of no other undisclosed information that would have influenced its share price other than its recent disclosures involving the planned sale of a controlling stake in the company.
On February 12, Singaporean conglomerate Keppel Ltd. and affiliates Keppel Management Ltd., Kepwealth Inc. and Molten Pte. Ltd. signed a share purchase agreement with Forward Synergy Group, Inc. for the sale of their combined 86.83-percent stake in Keppel Philippines for approximately P472.7 million, or P1.8526 per share.
The transaction is subject to certain conditions, including the conduct of a mandatory tender offer in accordance with Philippine securities regulations.
In connection with the deal, Keppel had requested a voluntary trading suspension from February 13 to 18, to allow investors sufficient time to assess the additional disclosures related to the potential change in control before trading resumed.
The company had clarified that while the share purchase agreement had been signed and the transaction is expected to result in Forward Synergy acquiring control of the company, there was no actual change in control at this stage pending completion of conditions and regulatory requirements.
Market observers noted that the company’s market price has traded significantly above the P1.8526 per share tender offer price, reflecting possible investor speculation about the potential plans following the acquisition.
“Not sure why people are buying way above the tender offer price of P1.8526. It will be a backdoor — of what, no one knows,” said Manny Ocampo, president and chief operating officer of Investment and Capital Corp. of the Philippines (ICCP).
Keppel Philippines shares on Thursday fell P0.38, or 10.56 percent, to close at P3.22 each.