Tanduay boosts float, sets P36.7-B top-up offer

MANILA, Philippines - Tanduay Holdings Inc. (THI), soon to transform as the flagship firm of taipan Lucio Tan, has set its planned top-up offering of up to three billion shares worth about P36.7 billion late this year or early 2013 to take advantage of a booming economy and widen its public float.

The company has mandated UBS Investments Philippines Inc. as financial advisor and sole bookrunner for the equity offering, which will give investors a chance to own shares in Tan’s major businesses such as airline, tobacco, banking, liquor and property, following THI’s reorganization into a holding company.

On the sidelines of the company’s special stockholders meeting yesterday, THI president Michael Tan said they are very bullish on the nation’s economy and good governance, pointing out that the Aquino Administration is doing its job well.

“We feel it is the right time to do this, to participate in the growing economy,” Tan said.

Tan said all business units are doing good on the back of strong consumer spending.

THI, which will be renamed LT Group Inc. (LTG), now owns a 90 percent stake in Asia Brewery, at least 83 percent of Fortune Tobacco Corp., 98.1 percent of Eton Properties, 49.84 percent of flag carrier Philippine Airlines, 50.97 percent of budget carrier Air Philippines Corp., 34.79 percent of Philippine National Bank and 27.62 percent of Allied Bank.

THI reported a combined unaudited first semester net earnings of P3.2 billion and total assets of P236.5 billion. Its liabilities stood at P172.6 billion as of end-June this year.

Jose Gabriel Olives, chief financial officer of Tanduay, said the company will absorb an additional P150 billion to P160 billion in liabilities from various LT Group units as part of the consolidation.

The LT Group effectively gained backdoor listing with the infusion of assets into Tanduay, avoiding a lengthy and costly process of going public.

Tan said the enlarged business portfolio will provide the corporation with significant opportunities for synergies and business growth, enhanced flexibility in funding, as well as an improved financial profile.