Conglomerate San Miguel Corp. (SMC) is raising some P33.5 billion from the planned issuance of Series 2 preferred shares.
San Miguel President Ramon S. Ang said proceeds from the issuance will be for the refinancing of the company’s debt.
The company said in its disclosure to the Philippine Stock Exchange that it is offering for sale to the public and investors 446.67 million of the Series 2 preferred shares at P75 per share—to be issued in three subseries.
Its board has authorized the engagement of underwriters and advisors for the planned issuance, which followed the company’s reissuance and private placement of San Miguel’s Series 1 preferred shares, worth almost P21 billion.
That issuance consisted of 279.41 million of the preferred shares, at P75 per share.
The shares were sold to Gingoog Holdings Corp., 83.82 million shares; Lucena Holdings Corp., 89.41 million shares; and Metroplex Holdings Corp.,106.17 million shares.
The shares carry a dividend rate of 5.635 percent per annum and are perpetual, cumulative and nonvoting.
The company earlier said it plans to increase its revenues at the 30 percent average for the next three years, but this will depend on how fast it can seal merger and acquisition deals.
“In the last seven years, if you notice, most of the growth were through acquisitions. Moving forward, I’m not sure if that kind of opportunity is still available but we will try our best,” Ang said.
Other than acquisitions, Ang said the company also continues to pursue organic growth, as demand for its product increases along with the pace of growth of the local economy.