Corporate News

Japan’s Tosoh takes over Mabuhay Vinyl

Posted on September 16, 2015

JAPANESE manufacturer Tosoh Corp. has cemented its control of Mabuhay Vinyl Corp. with the completion of an offer to buy out the minority shareholders of the Philippine chemical firm.

Mabuhay Vinyl told the stock exchange Tosoh purchased 317.78 million shares of the listed company, equivalent to 48.05% the latter’s outstanding capital stock, at P1.70 apiece.

The shares consist of 234.57 million shares bought from BDO Unibank, Inc. implementing a July 23 share purchase deal, and another 83.21 million shares acquired from minority shareholders through a mandatory tender offer launched last week.

The shares were crossed yesterday on the Philippine Stock Exchange through a special block sale.

Tosoh now owns 581.79 million shares in Mabuhay Vinyl, or 87.97% of the listed firm’s outstanding capital stock.

In July, Tosoh had bought Mabuhay Vinyl shares held by BDO, raising its ownership to more than 51%, thus, triggering the tender offer.

Before the transaction with BDO, Tosoh owned 39.92% of Mabuhay Vinyl as of July 15, according to the local firm’s latest public ownership report.

According to its Web site, Mabuhay Vinyl is the first and largest chlor-alkali producer in the Philippines. It manufactures caustic soda and hydrochloric acid, and the only firm that produces chlorine in commercial quantities. The company also supplies more than 50% of the country’s requirement for sodium hypochlorite.

The company operates manufacturing plants in Iligan City and at the Laguna Technopark in Biñan, Laguna.

The 80-year-old Tosoh, which is listed on the First Section of the Tokyo Stock Exchange, covers 100 companies worldwide with a workforce of more than 11,500 people.

The group’s major markets include the chemical and petrochemical, construction, automotive, consumer electronics, information technology, bioscience, and environmental, according to its Web site. -- Krista Angela M. Montealegre