Emperador Inc. will issue another 121.391 million new shares worth P832.26 million to Arran Investment Private Ltd., an affiliate of Singapore’s sovereign wealth fund.
The issuance of new shares represent the accrued interested due under its private placement in 2014. Under that deal, Arran Investments invested P17.6 billion in Emperador comprising of the purchase of common shares and equity-linked securities convertible to common shares.
The GIC affiliate agreed to buy 1.12 billion common shares in Emperador at P11 each”•or for P12.32 billion, equivalent to a 6.95-percent direct equity stake.
It will have 9.64 percent holdings in Emperador by the time the brandy maker’s equity-linked securities are converted into 480 million common shares valued at P5.28 billion.
Arran Investment also has an option to invest an additional P4.4 billion in the listed liquor company.
The private placement transaction gives Emperador fresh capital that will help fund its expansions locally and globally.
Emperador is the world’s largest brandy company that owns Spanish brandy and sherry brands, namely Fundador and Scotch whisky led by The Dalmore and Jura.
Emperador reported a net income of P4.44 billion in the first three quarters of the year, down 9.7 percent from P4.92 billion recorded in the same period a year ago.
Nine-month revenues fell 1.1 percent to P26.9 billion from a year ago level of P27.2 billion.
Net income in the third quarter increased 18 percent to P1.7 billion from P1.4 billion on year, while revenues dropped to P9.1 billion from P9.4 billion in the third quarter of 2016.
Emperador plans to introduce new products to the Philippine and overseas markets to boost the company’s profitability .
“This is in line with ongoing efforts in pursuit of ‘premiumization’ strategy in the Philippines as well as our strategy to grow Scotch whisky business worldwide and also potentially partake in the comeback of international brandy particularly in the luxury end of the spectrum,” Emperador president Winston Co said. Jenniffer B. Austria