Wilson Sy kills it with soon-to-be delisted EDC: I was surprised Wealth was the only one buying it
Stock picking wizard Wilson Sy proves yet again why he is called the Warren Buffet of the Philippines.
Sy has made another home run play this time with Energy Development Corp. whose shares were announced for delisting as early as last year.
Sy ordered his good-looking traders at Wealth Securities to gobble up all EDC shares they could get their hands on for his PhilEquity Fund.
EDC moved to No. 7 in PhilEquity’s To Ten stock holdings and the mutual fund’s investors stand to gain a massive windfall from the tender offer made by EDC management to people who held on to the stock. Philequity said it ws unusual for an “alpha stock” in its portfolio to emerge in the Top 10 and this showed Sy’s confidence in the stock
In an investor briefing last Saturday, Sy said he bought EDC shares at an average of P5 on a bet that management would offer a premium to buy out all the shares.
A few weeks ago, EDC announced that it would offer to buy back its shares at P7.25 or a 46 percent premium over the closing share price of P4.95 on 7 August 2018 and a 40 percent premium over the three-month volume weighted average price of P5.18. The tender price is the same price offered by EDC to shareholders when it bought back 85 percent of its shares in September 2017.
Sy expects to cash in on is bet during the tender offer period scheduled from 25 September 2018 to 22 October 2018.
” We were the top buyer of EDC. We were wondering why nobody else was buying, it was all Wealth, Wealth, Wealth on our screens. But our risks paid off and that is good for our investors,” said Sy.