Chelsea Logistics [C 1.31 0.77%] [link] confirmed that its owner, Dennis Uy, is looking for “strategic partners” to invest in C, but underlined that its search is not for a “mere sale of assets”, but for a partner that will “support growth, expand the business, and promote the brands”. C confirmed that Mr. Uy wants to get beyond the “buy and sell” mentality, and “move towards a more sustainable business”.
MB: Spin it however you like, but massive chunks of Chelsea, Phoenix Petroleum [PNX 9.40], and Dito Telecommunity [DITO 3.70 2.12%], are not hitting the market because Dennis Uy suddenly woke up and realized that sustainable growth requires a steady hand of a competent strategic investor. As Mr. Uy said to Bloomberg, “we know how to sell, and we know how to buy”; yet, the challenge for the group has always been the profitable operation of its wide array of businesses. Watching Mr. Uy acquire businesses during the “front 9” of Duterte’s presidency reminded me of one of my lola’s favorite sayings (with respect to my holiday eating): “your eyes are bigger than your stomach!” It seems like Mr. Uy’s eyes may have indeed been too big, as he now calls about looking for someone to help him finish what’s on his plate.
Raslag [ASLAG 2.06 0.49%] [link] ownership group members continue to snap up ASLAG shares on the open market, as they have since the company’s IPO back in early June. The insider buying has dropped ASLAG’s public float down from an initial 26.83% to 23.53% as of the PSE’s website this morning.
MB: The insider buying acts as a sort of unofficial buy-back. When ASLAG executives buy shares on the open market, their bids get added to the sea of public bids and those sales support/push the stock price. ASLAG’s ownership group can’t do this forever, even if they had the money to do so, as each time they make a purchase, those shares are removed from the public float. Each purchase pushes ASLAG closer to the PSE minimum public float requirement of 20%.
The Keepers [KEEPR 1.26 0.80%] [link] has plans to acquire up to 50% of the Spanish wine and brandy producer, Bodegas Williams & Humbert SA (Bodegas). Bodegas produces the “Alfonso” brand of brandy that accounts for approximately 60% of KEEPR’s annual revenues. Lucio Co already owns 30% of Bodegas. KEEPR will acquire Mr. Co’s stake as part of the larger acquisition transaction.
MB: From KEEPR’s perspective, this move would help solidify the supply of its chief source of income (Alfonso brandy). From Mr. Co’s perspective, this move would potentially bring a tidy little profit flipping the 30% stake in Bodegas that he bought just four years ago. While the owner’s interest appears to be loosely aligned with shareholders in this transaction, let’s wait for the per-share price of the proposed acquisition before we pass judgment on something that could still be a win for shareholders.
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