MANILA - Ongpin-led holding firm Boerstar Corp. is offering to buy the shares of minority stockholders in listed miner Atok Big Wedge Co., Inc. at a price lower than that of the market, making an analyst conclude that the reception would likely be lukewarm.

In a notice published in newspapers yesterday, Boerstar said it would pay a peso for every share held by Atok’s minority stockholders. The price is lower than the P1.92 stock price of Atok’s "A" shares (exclusive to locals) when it was last traded Sept. 4, and Atok "B" shares (open to all) which closed at P2.40 apiece last month.

Boerstar said the offer would start this Thursday and would run until the end of the October.

"The minority shareholders are unlikely to sell their shares at such price. If I am a shareholder, I will just sell it to the market and earn higher rather than [take] the offer," Jun B. Calaycay of Accord Capital Equities Corp. said.

Mr. Calaycay said it seemed the "majority sold out the minority stockholders," adding he would not be surprised if small shareholders started liquidating their positions.

"If the company sold it at a deep discount than the market, it means that the outlook for Atok or the industry is not promising. The buyer could have other reasons for acquiring the company such as using it as a vehicle for other things. Or, he might have seen something that we are unaware of," Mr. Calaycay said.

The analyst said Boestar might not intend to delist Atok from the exchange, otherwise the Ongpin-led holding firm would have offered to buy the minority shares at a more attractive price.

Boerstar, owned and controlled by former trade minister Roberto V. Ongpin and former Finance undersecretary Eric O. Recto, has holdings in Philweb Corp., ISM Communications Corp., and Philex Mining Corp., the country’s largest miner.

Mr. Recto said Atok won’t be delisted. "We are using it as our vehicle for our investments in mining and oil and gas exploration," he told BusinessWorld.

Boerstar on Monday announced its plan to become a controlling investor in Atok, with the privately held firm infusing P34.781 million into the listed miner.

Boerstar will likewise invest an additional P25.218 million in the event that all other shareholders accept the tender offer.

The miner has a total of 25,218,775 issued and outstanding shares out of its authorized ceiling of 60 million shares. The existing shareholders have agreed to tender a minimum of 13.4 million shares, which will assure Boerstar of at least an 80% stake, the miner said.

Part of Boerstar’s plan is for Atok to invest in other mining assets. Atok meanwhile will use new funds on the rehabilitation of its Benguet gold mine, which will cost around P30 million.

An earthquake in 1992 forced the miner to stop commercial operations in the area, followed by dampened gold prices and the Asian financial crisis.

So far, the miner has spent P2 million for the exploration and rehabilitation of its gold mine.