Conglomerate San Miguel Corp. (SMC) is targeting to raise as much as P50 billion through the issuance of Series 2 preferred shares.
The fundraising is part of the P65-billion share sale under a three-year shelf registration program SMC filed with the Securities and Exchange Commission (SEC).
San Miguel said the initial tranche of the share sale will be used to refinance peso-denominated short-term loan facilities, repayment of the Series B bonds and the Series H bonds, and funding of the company’s airport project in Bulacan.
The initial share sale covers 466.67 million Series 2 preferred shares, divided into a firm offer of 400 million shares and 266.67 million shares as its oversubscription option.
San Miguel said it plans to conduct the offer between November 6 and November 13, with listing on the Philippine Stock Exchange targeted on November 20.
San Miguel has tapped Bank of Commerce, BDO Capital and Investment Corp. and China Bank Capital Corp., as joint-issue manager.
Asia United Bank Corp., BPI Capital Corp., Philippine Commercial Capital Inc., SB Capital Investment Corp., PNB Capital and Investment Corp., Union Bank of the Philippines, Land Bank of the Philippines, and RCBC Capital Corp., meanwhile, will join BDO Capital and China Bank Capital as joint lead underwriters and bookrunners.
SMC reported last month that its income in the first half rose 18 percent to P23.3 billion from the previous year’s P19.8 billion, due to sustained performance improvements across its units.
SMC said its performance during the period was also supported by contributions from its new acquisition, Eagle Cement Corp.
Consolidated revenues were down 4 percent to P685.2 billion from the previous year’s P711.41 billion, as declining crude oil prices continued to affect fuel subsidiary Petron Corp. while San Miguel Global Power contended with lower volumes.
San Miguel Food and Beverage Inc.’s income was flat at P18.8 billion compared with the previous year’s P18.75 billion.
Petron’s net income fell 20 percent to P6.14 billion from the previous year’s P7.7 billion. Net sales fell 8 percent to P367.03 billion from the previous year’s P398.51 billion.
San Miguel Global Power Holdings Corp.’s off-take volumes for the first semester ended at 10,685 gigawatt hour, 25 percent lower than last year’s level following the termination of its 670-megawatt power supply agreement with Manila Electric Co.
Consolidated net income jumped to P5.9 billion, more than four times higher than last year due partly to the appreciation of the peso this year.
San Miguel’s cement business, composed of Eagle Cement Corp., Northern Cement Corp. and Southern Concrete Industries Inc., registered consolidated revenues of P20.16 billion, tripling from last year’s P6.9 billion. Operating income rose to P3.02 billion, from P398 million the previous year.