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Administradora de Fondos de Pensiones Provida S.A. Message Board

  • johnmorelli johnmorelli Aug 3, 2013 3:22 AM Flag

    PVD dividend policy post acquisition by metlife?

    Does anyone know what PVD dividend policy will be post acquisition by Metlife. I would like to keep my shares and collect dividends but am concerned that Metlife may suspend dividend (they will have majority control I believe ).

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    • Unfortunately, you will NOT be keeping your shares of PVD once the acquisition goes through.

      Metlife will be purchasing 100% of the outstanding shares of PVD. Concurrent with the purchase of BBVA's control stake, Metlife will be issuing a tender for all remaining shares.

      You can certainly opt to hold out from the tender offer; after a few months, a compulsory tender will then occur, provided that 90% of all shares are taken up.

      Sentiment: Hold

      • 2 Replies to phorensicguy
      • I think you can keep your shares.
        Page 44 of the tender offer:
        "No Squeeze-Out of Minority Security Holders
        Chilean law only permits the squeeze-out of minority security holders of a Chilean corporation
        if the subject company's bylaws expressly allow a squeeze-out, and then only with respect to
        such security holders that obtained the securities in the subject company after such bylaws were adopted.
        Provida's bylaws do not allow the squeeze-out of minority holders of Common Shares or ADSs.
        Therefore, we do not expect to squeeze-out the remaining holders..."

      • Thanks for your reply. Did you get your info from Metlife or press releases? Maybe they won't get the 90% level required to force minority to tender their shares? They are only getting 64% ownership through purchase from BBVA as I have learned. I don't think the purchase price is high enough so maybe others will feel as I do? Obviously BBVA needed the money, given need to bolster capital. Spain banking market must be a mess! In such cases you have to sell good assets to raise capital. I do believe they want the whole company though. We'll see!

 

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