Diversified conglomerate San Miguel Corp. said it will acquire 4.24 billion in additional common shares in food manufacturing unit San Miguel Pure Foods Co. Inc.
San Miguel said in a regulatory filing its board of directors in a special meeting held Nov 3. approved the subscription to an additional 4.24 billion common shares in SMPFC to be issued out of the increase in the unit’s authorized capital stock, stock split and corresponding amendment to its articles of incorporation.
“The subscription amount valued at P336,349,294,992.60 was based on the independent valuation expert report of ING Bank N.V. presented to the board of directors, with Standard Chartered Bank as the transaction adviser,” San Miguel said.
In exchange, San Miguel will convey its 7.859 billion common shares in San Miguel Brewery Inc. and 216,972 million common shares of Ginebra San Miguel Inc. as full payment for the subscription to the new additional shares.
San Miguel said it would file a request for a tax-free ruling from the Bureau of Internal Revenue relating to the exchange of shares.
It will notify the Philippine Competition Commission of the transaction between San Miguel and SMPFC and the non-application of the requirement to obtain PCC approval to proceed with the transaction
It will also obtain the relevant consents and approvals of the Philippine Stock Exchange and the Securities and Exchange Commission relating to the listing by SMPFC of the new shares. Jenniffer B. Austria
SMPFC in May said it would spend P56 billion in capital expenditures over the next three years to primarily expand the production capacities of its poultry, processed meats and flour milling businesses.
The company plans to secure funding for the planned expansion plans from internally generated funds and possible share sale.
The company’s public float stands at 14.61 percent.
SMPFC posted a profit of P3.1 billion in the first half of the year, up 26 percent year-on-year. Jenniffer B. Austria