Phinma abandons plan to buy Laguna college
PHINMA Corp. has abandoned plans to conduct a tender offer for the purchase of a majority stake in Laguna College of Business and Arts (LCBA).
To recall, the listed firm’s education arm, Phinma Education Holding, Inc. had announced on April 4 its plan to conduct a tender offer to acquire a majority stake or at least 55% in LCBA, with the 1.08 million shares of LCBA priced at P290 each.
“(A)fter determining that less than a majority of the stockholders of LCBA will sell their shares, Phinma Education has decided not to proceed with the tender offer,” the company said in a disclosure to the stock exchange on Monday.
LCBA would have been the Phinma group’s sixth educational institution, following Phinma Araullo University, Phinma Cagayan De Oro College, Phinma University of Pangasinan, Phinma University of Iloilo, and Southwestern University.
Incorporated in 1957, Phinma currently has investments in education, steel products, housing, business process outsourcing and the energy sector.
Phinma Education reported a 20% increase in revenues during the first quarter of 2017 to P554 million, following a 7% increase in enrolment during school year 2016 to 2017 to 54,691 students. The firm contributed P42 million to the parent’s net income of P48 million, which is 46% lower than what it posted in the same period a year ago.
Shares in Phinma were up by 10 centavos or 0.96% to close at P10.50 each on Monday. -- Arra B. Francia