Quick takes from around the market
1. Axelum [AXLM 2.40, up 3.0%; 299% avgVol] [link] stake sale agreement with Metro Pacific Investments (MPI) has now been amended to chop the full stake price of P5.32 billion into installment payments, and to condition those installment payments on “achievement of certain EBITDA milestones up to the original purchase price under the original share purchase agreement.” MPI said that it needed to “dig deeper” into AXLM’s FY23 and FY24 projected financials after, according to MPI, “they have not met their targets” and “the expected outcome in terms of performance in our earlier due diligence has not happened.”
MB quick take: Tell me your parent company freaked out about your acquisition without telling me your parent company freaked out about your acquisition. This is incredibly direct language from MPI that it is using to justify amending a deal that looked rushed and haphazard basically from the start. This amendment allows MPI to “claw back” part of the original P3.83/share purchase price if AXLM doesn’t hit certain EBITDA targets. The initial P3.37 billion payment due tomorrow doesn’t seem to be subject to any of these conditions. AXLM’s stock is down 30% from the time this deal was announced 10 months ago.
2. Robinsons Land [RLC 16.00, up 2.0%; 428% avgVol] [link] disclosed that its President and CEO, Frederick Go, resigned effective January 8 to accept an appointment as Special Assistant to the President for Investment and Economic Affairs. The RLC board appointed Lance Gokongwei to replace Mr. Go across all of his RLC roles. Mr. Go’s appointment also caused him to resign from his posts in other Gokongwei Family companies, such as RL Commercial REIT [RCR 4.70 unch; 162% avgVol] and Altus Property Ventures [APVI 9.47, up 5.1%; 30% avgVol].
MB quick take: This is a high-profile position within the Marcos Administration, as the Special Assistant sits on the board of NEDA, and the Development Budget Coordination Committee. While the resignations seem calculated to address concerns about potential conflicts of interest, it will be interesting to see how the Gokongwei Family operates now that it has managed to get itself even closer to the seat of power.
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