December 20, 2019 | 6:52 pm Victor V. Saulon
PHINMA Corp. said Friday that its education subsidiary acquired a controlling stake in The Republican College, Inc. and made new investments in the acquisition to buy “essential” properties.
“The transaction involves the acquisition of shares from existing shareholders of The Republican College, Inc. as well as investment in new shares of stock of The Republican College, Inc.,” it told the stock exchange.
The holding firm said the move would strengthen the position of its unit Phinma Education Holdings, Inc. in its industry. It estimated the investment at P247 million.
Phinma Corp., which also operates in the steel, housing, and business process outsourcing sectors, said the transaction closed on Dec. 19. The acquired 24,114 shares represent 94.5% ownership.
The deal is subject to the Securities and Exchange Commission’s approval of the increase in capital stock.
The listed firm described The Republican College, based in Cubao, Quezon City, as offering the accountancy and business management strands and the general academic strand with specialization in criminology for senior high school.
The college also offers undergraduate courses in political science, education, business administration, and criminology, along with graduate degrees in business administration, education, and criminology.
In particular, the number of shares to be acquired when the deal is completed amounts to 25,250 shares or 100% of the college’s outstanding shares at P673 each.
“The purchase price takes into account various factors such as the number of enrollees and the appraised value of properties registered under the name of the school and its owners,” Phinma Corp. said.
It said Phinma Education made a P10 million down payment on Nov. 11. The remainder of the purchase price was due to be delivered by the unit upon close of the transaction on Dec. 19.
The investment in The Republican College will add to the subsidiary’s network of colleges and universities. The college is its seventh school in the Philippines.
Phinma Education also owns Phinma-Araullo University, Phinma-Cagayan de Oro College, Phinma-University of Iloilo, Phinma-University of Pangasinan, Phinma-Saint Jude College, and Southwestern University.
On Friday, Phinma Corp. rose 2.78% to P9.97.