JG Summit raises $125M via private placement

MANILA, Philippines - Gokongwei-owned JG Summit Holdings has raised $125 million (roughly P5.375 billion) through a private placement of shares, it told the stock exchange yesterday.

JG Summit said its affiliates sold 215 million shares in an overnight private placement at P25 apiece.

It said the transaction was part of plans to widen the company’s shareholder base as well as in response to strong demand for its stock.

Food manufacturing subsidiary Universal Robina Corp. divested 57.66 million shares in JG Summit, accounting for 26.8 percent of the total shares sold by the conglomerate’s units.

UBS AG was the sole bookrunner for the transaction.

JG Summit said the initial offer size of the transaction was $75 million but was upsized to $125 million due to robust global investor demand amounting to nearly thrice the base deal size.

JG Summit is one of the leading companies in the country, with interests in air transportation, banking, food and beverage, hotels, petrochemicals and real estate.

Awash with cash from the sale of its telecom unit Digital Telecommunications Philippines Inc. to Philippine Long Distance Telephone Co., JG Summit is looking at venturing into infrastructure to further spur growth.

The group is eyeing at least four airport development projects under the government’s Public-Private Partnership (PPP) program. These projects include the P4.6-billion Puerto Princesa airport, P8.7-billion Laguindingan airport, P6.6-billion New Legaspi airport development, and the P2.5-billion Mactan-Cebu International airport terminal building expansion.

Aside from the four airports, JG Summit is also interested to bid for the Ninoy Aquino International Airport Terminal 3 (NAIA 3) once the government decides to bid out the project.