RFM to buy back shares from foreign stockholder

RFM Corp. disclosed to the Philippine Stock Exchange (PSE ) yesterday that in its Dec. 13 board of directors meeting, the purchase by the company of 408,772,385 common shares owned by WP Argosy Ltd. was approved, at the price of P2.57 per share by way of treasury shares.

Such purchase is subject to the occurrence of the financial closing of the Cosmos sales transaction.

RFM president and CEO Jose A. Concepcion III said that WP Argosy, which accounts for around 20.7-percent shareholdings in RFM, indicated its desire to sell its shares back to RFM as it decided to consolidate and rationalize its investment positions in the aftermath of the Sept. 11 event.

"We were told that they are studying other investment opportunities in the region," Concepcion said.

"The exit price for WP Argosy, which is about 15-20 percent premium to market, was a negotiated amount, in consideration of WP Argosy’s valuable contribution in the last two years to RFM and its Board. WP Argosy actively participated in Board and management deliberations and they helped us set strategic directions for the group as well as shared their resources in helping upgrade certain areas of competencies in RFM, and we give them recognition for all these support," Concepcion said.