A SUBSIDIARY OF STI Education Systems Holdings, Inc. has sold 20% of its equity in Maestro Holdings, Inc. (MHI) to Chita SPC Ltd., in efforts to mitigate the volatility in its future earnings.
In a disclosure to the stock exchange, STI announced that its subsidiary, STI Education Services Group, Inc., has sold part of its equity to Chita SPC, a segregated portfolio company based in the British Virgin Islands.
“The sale will allow STI ESG to monetize its investment in MHI which STI ESG intends to use for its core business,” the disclosure said.
The transaction included the sale of 1.28 million shares and is priced at $7.80 per share. The amount received was $10 million.
STI said the sale would give STI ESG a gain of P60 million beyond its carrying value as of March 31, 2020.
“The purchase price is equivalent to a price per book value per share of 1.2x or a 20% premium to the book value per share as of March 31, 2020,” the disclosure said.
STI said the payment terms will be 30% downpayment upon the execution of the deed of absolute sale, while the remaining 70% is due on Jan. 29 next year.
According to the disclosure, MHI owns 100% of PhilPlans First, Inc., 91% of Philippine Life Financial Assurance Corp., and 99% of Philhealthcare, Inc.
On Wednesday, shares in STI at the stock exchange rose 4.26% or P0.020 to end at P0.490 apiece. — Revin Mikhael D. Ochave
