Filinvest Land Announces Tender Offer Move

Filinvest Land, Inc. (FLI) has announced that its Board has approved a capped voluntary tender offer to purchase or reacquire up to 1,866,000,000 common shares, equivalent to approximately 7.69% ownership of FLI’s outstanding and listed stock.

Photo Caption I Photo: Filinvest Land, Inc.

This is in exchange for Filinvest REIT Corp. (FILRT) shares owned by FLI at an exchange ratio of 0.32 FILRT share for every 1 FLI share tendered. The transaction will provide FLI shareholders the opportunity for their shares to be bought back in exchange for FILRT shares.

FLI stockholders stand to benefit from the offer through price appreciation and a stronger dividend yield from FILRT shares.

Upon successful completion of the share swap, public ownership of FILRT will increase to 46.75%, broadening FILRT’s shareholder base, and comfortably surpassing the 33.33% minimum public ownership requirement set by the Philippine Stock Exchange (PSE) for REITs.

“Despite current share price challenges, we continue to believe in the intrinsic value of Filinvest Land, as we enter a more positive macroeconomic environment that favors our business.

The share buyback allows existing FLI shareholders to unlock value. Not only does the offer value their shares higher than the current FLI market price, but they are also getting higher-yielding FILRT shares in return,” said Tristan Las Marias, FLI President and CEO.

As of Sept. 23, 2024, FLI shares traded at a 30-day volume-weighted average price (VWAP) of ₱0.64, with FILRT shares trading at ₱3.08. The exchange offer prices FLI shares at ₱1, representing a 56% premium over their VWAP.

FILRT’s portfolio consists of 17 Grade A and LEED Gold-certified office buildings featuring green and sustainability-themed elements, with over 330,400 square meters of gross leasable area (GLA), including properties in Northgate Cyberzone, Filinvest City, Alabang, and Cebu IT Park, among others.

FLI engaged FTI Consulting to provide a valuation and fairness opinion on the reasonable and fair price range for both FLI and FILRT shares and the exchange ratio.