Alliance Global Group approves reclassification of common shares

Alliance Global Group Inc. (AGI), the holding firm for all business interests of industrialist Andrew Tan, has approved the reclassification of 30 million unissued common shares into three billion preferred voting and non-convertible shares.

In a disclosure to the Philippine Stock Exchange, AGI said it has tapped BDO Capital & Investment Group as financial advisor on the final structure of the preferred shares to be eventually issued.

The preferred shares may be issued from time to time in one or more series as may be determined by the board, AGI said.

Tan recently infused P20 billion worth of assets in AGI to hold all his interests in real estate development, food and beverage, and the fastfood industry.

AGI owns 49 percent of the Philippine franchise holder of the McDonald’s food chain.

Tan earlier said AGI will serve as a primary vehicle to expand his existing businesses and to look into various opportunities for growth.

As a new conglomerate, AGI will embark on aggressive property development through Megaworld, a leader in the property market’s two fastest-growing segments: middle-income housing and business process outsourcing office.

AGI’s food and beverage business, on the other hand, will be expanded through Emperador Distillers Inc., the country’s third largest liquor firm. Among Emperador’s products include Club Valentino Rhum, Collector’s Premium Whisky, Andy Player Special Whisky, and Emperador Brandy.

AGI is also the exclusive distributor of Campbell Soup Co.’s products and E&J Gallo Winery Inc. wines in the Philippines. It also handles the international marketing of McKester PikNik International Ltd.’s food products.

Meanwhile, AGI’s quick-service restaurant operations will be boosted by McDonald’s, which expects to double its branch network to 500 in the next five years. Golden Arches Development Corp, the master franchise holder of McDonald’s in the Philippines, is owned 51 percent by the family of businessman George Yang and 49 percent by Tan.