Converge ICT Solutions Inc. said Tuesday it acquired a 3.5-percent share of the company from Coherent Cloud Investments B.V., a company managed by Warburg Pincus, for P6.5 billion.
Converge said in a disclosure to the stock exchange it bought 259.72 million pre-transaction outstanding shares from Coherent.
The buyback was concurrent with the accelerated book-build offering by Coherent Cloud, which witnessed strong demand from international and local investors.
The price per share of the ABO and the buyback was pegged at P25 per share.
“The share buyback highlights the confidence of the founders and management team in Converge ICT’s long-term, sustainable growth potential and value creation as well as the company’s confidence in its continued ability to capture the vast market opportunity,” Converge ICT founder and chief executive Dennis Anthony Uy said.
Converge’s public float will increase to over P30 percent upon completion of the ABO and the buyback from about 20 percent at the time of IPO in 2020. Coherent Cloud will also distribute within 30 days its remaining shares in Converge ICT to certain parties as part of the arrangements.
Saurabh Agarwal, managing director of Warburg Pincus, will continue to remain on Converge ICT’s board following the completion of the transaction.
“Warburg Pincus invested in Converge ICT several years ago to partner with Dennis and Grace in fulfilling their vision of building a business focused on providing high-speed fixed broadband to millions of unserved and underserved households and businesses across the Philippines,” Agarwal said.
“We are extremely proud of what Converge ICT has achieved over the last few years and believe it continues to be well positioned to accelerate its growth trajectory and further capture a significant share of the market. The company now has a deep bench of management team in place and I am confident this is the right step forward for us as well as the company. Converge ICT will undoubtedly cement its position as the largest high-speed broadband operator in the Philippines,” he said.