By Arra B. Francia

PRIVATE holding firm Newmanholdings, Inc. has withdrawn its tender offer to acquire the remaining 34% of listed chemical trader LMG Chemicals Corp.

In a disclosure to the stock exchange on Friday, LMG’s parent Chemical Industries of the Philippines, Inc. (CIP) said the withdrawal follows the termination of the share purchase agreement (SPA) between the company and Newmanholdings.

Newmanholdings had failed to complete the tender offer on August 1, the final date specified under both parties’ agreement when the deal should have been closed. CIP also said that Newmanholdings was unable to inform them of when it plans to proceed with the tender offer.

“As a result of such uncertainty and in light of the continued delay in the completion of the mandatory tender offer as earlier disclosed by the Corporation in its previous disclosure, the Corporation has decided to terminate the SPA with Newmanholdings,” CIP said in its Sept. 12 disclosure.

Newmanholdings disclosed its intention to fully acquire LMG last June through the launch of the tender offer. The company had earlier agreed to purchase nearly 66% of LMG for a total of P379.033 million or P2.97 per share, in a potential backdoor listing.

Incorporated in 1970, LMG was initially established as an industrial chemicals manufacturer and distributor, which includes caustic soda, sulfur, and other industrial chemicals. By 2009, the company had divested a number of its businesses and is now only engaged in the trading of chemical products.

LMG booked a net loss P240,678 in the second quarter of 2017, widening its full year loss to P491,506.

Shares in LMG picked up 8.01% or 33 centavos to P4.45 each at the Philippine Stock Exchange on Friday.

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