Bulacan Power Generation Corporation is a wholly owned subsidiary of AC Energy Philippines, Inc. (ACEN). Bulacan Power Generation Corporation has been owning shares of ACEN. On October 28, 2020 (disclosed October 29) Bulacan Power Generation Corporation dumped into the market 3,500,000 shares at a range of 3.82 to 3.87.
When most companies are buying back their shares, ACEN’s subsidiary Bulacan Power Generation Corporation took advantage of the market’s willingness to pay premium for ACEN shares. It took the opportunity to raise some funds.
The Ayalas are valuing ACEN at 2.97 a share only. AC Energy, Inc., the 100% owned subsidiary of Ayala Corp., is exchanging its international power assets for 16,685,800,533 shares of ACEN which was valued at 2.97 a share only by independent appraisers commissioned by the Ayalas.
The transactions are in effect buying ACEN at 2.97 a share while selling it to the public at 3.82 to 3.87. Very smart.
Once the exchange of assets for shares is effected it will dilute ACEN public shareholders. Public pay 3.80 plus, Ayalas pay 2.97.
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Disclaimer and Disclosure: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent viewpoint. Accuretti Systems Inc. in day to day trading may have owned, or is considering buying or disposing, the shares of the companies mentioned in this commentary.