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Friday, March 29, 2024

San Miguel unit reduces share sale price to P85

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San Miguel Food and Beverage Inc., a unit of San Miguel Food Corp., priced its planned share sale at the bottom range of P85 apiece amid falling equities markets. 

At P85 per share, SMFB is now looking to raise as much as P34.07 billion from the sale of 400.94 million secondary shares. The figure could go up to P39.19 billion if the 60.14 million over allotment shares are taken up during the offering period.

“Payment and delivery of the offer shares shall be on November 12, 2018,” SMFB said in a disclosure.

The size of the planned share sale has been significantly reduced from the original estimate of P142.8 billion.

SMFB during its initial filing with the Securities and Exchange Commission in August has planned to sell up 1.02 billion secondary shares at a price of up to P140 per share.

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But the Philippine market has fallen by more than 16 percent since the start of the year on continued foreign selling.

Several companies like consumer tech firm Cal-Comp Technology (Philippines) and Campos-led Del Monte Pacific Ltd. have deferred their initial public offering plans because of volatile markets.

Cal-Comp Technology (Philippines), a member of the Taiwanese technology conglomerate New Kinpo Group, was looking to raise P6.77 billion while Del Monte had planned a P17.55-billion maiden offering.

San Miguel president and chief executive officer Ramon Ang earlier said the conglomerate would push through with the planned share to comply with the 10-percent minimum public ownership requirement of the exchange.

The public float of SMFB is currently at less than five percent after implementing a share swap with San Miguel to facilitate the merger of units San Miguel Pure Foods Co., San Miguel Brewery Inc. and Ginebra San Miguel.

SMFB hired JP Morgan Securities Plc, Morgan Stanley Asia (Singapore) Pte., UBS AG Singapore, Goldman Sachs (Sinagpore) and Duetsche Bank as the international book runners. BDO Capital & Investment Corp. and BPI Capital Corp. are the local underwriters.

Share price of SMFB on Thursday fell nearly 1 percent to P83 while that of parent San Miguel declined 1.7 percent to P159.80.

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