ENERGY Development Corp. (EDC) has secured approval from the securities regulator on its request for exemptive relief from compliance with the 60-business day rule to complete its tender offer.
In a disclosure to the stock exchange, the Lopez-led renewable energy company said the approval from the Securities and Exchange Commission (SEC) allows the company to extend the offer period for 20 more business days from Oct. 22, 2018, “if an extension is necessary or desirable” to complete the tender offer.
EDC quoted the SEC’s letter as saying that the commission viewed “that under this situation extending the tender offer period is for the benefit of the Company’s shareholders. Thus granting the extension request is consistent with public interest and protection of investors.”
In August, EDC said it would conduct a tender offer for up to 2,040,006,713 common shares at P7.25 each that are held collectively by the public. The move is ahead of the company’s plan to delist from the stock exchange.
“The intention to eventually delist EDC was shared with the market last year and the tender offer that our board has approved today presents a meaningful opportunity for our minority shareholders to realize their investment prior to the delisting of the company, at a significant premium to the current share price,” EDC President and Chief Operating Officer Richard B. Tantoco stated.
On Monday, shares in EDC slipped by 0.14% to close at P7.06 each.