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Friday, March 29, 2024

SMC food unit gets nod to sell P142.8-billion shares

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The Securities and Exchange Commission on Thursday approved the P142.8-billion share sale of San Miguel Food and Beverage Inc.

Documents filed with the SEC showed that SMFB would sell up to 887 million in secondary shares owned by parent company San Miguel Corp. and another 133 million shares to cover over-allotment.

The company earlier set an indicative offer price of up to P140 per share.  SMFB plans to conduct the share sale this month.

The company 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 and Investments Corp. and BPI Capital Corp. were tapped as the local lead underwriters for the offering.

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The planned share sale will enable the company to comply with the 10-percent minimum public ownership requirement of the Philippine Stock Exchange for listed companies.

The public float of SMFB is currently at less than 5 percent after implementing a share swap with San Miguel to facilitate the merger San Miguel Foods Co., San Miguel Brewery Inc., and Ginebra San Miguel.

If the P142-billion planned share sale of SMFB pushes through, it would be the largest equity deal in the local bourse and would easily surpass the P38-billion ($912 million) follow-on offering of LT Group Inc., the holding company of tycoon Lucio Tan.

SMFB said consolidated net income rose 20 percent in the first half to P15.4 billion. Consolidated revenues hit P137.4 billion in the first six months, up 15 percent from the same period last year.

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