LT Group hikes stake in Asia Brewery to near 100%

MANILA, Philippines - LT Group Inc. (formerly Tanduay Holdings Inc.) is acquiring additional shares in Asia Brewery Inc., bringing its total shareholdings to 99.99 percent from 90 percent.

LTG also approved the acquisition from its controlling shareholder, Tangent Holdings Corp., of P9.91 billion worth of receivables, increasing LTG’s debt by the same amount.

The acquisition is part of the consolidation of various businesses of tobacco and liquor magnate Lucio Tan under LTG.

The reorganized company, which will become Tan’s listed flagship firm, will own shares in Fortune Tobacco, Philippine National Bank, Eton Philippines, Tanduay and Asia Brewery.

The consolidation aligns all Tan assets under one roof, allowing the group to leverage emerging opportunities in different sectors and provide better realization of value for investors.

It will also enable better utilization of resources and capital and create a stronger base for future growth.

The consolidation is also seen to unlock the value in operating assets and eliminate the need for multiple listing by group companies.

In the nine months ending September this year, LTG’s unaudited combined net income amounted to P5.7 billion on revenues of P20.8 billion.

Meanwhile, Eton Philippines said it would abide by the Securities and Exchange Commission’s directive to extend the deadline for the tender offer period, which was supposed to expire yesterday (Dec.5).

The SEC order was in response to a complaint lodged by the property firm’s minority shareholders who found the P3 tender offer price to be unfair.

The minority shareholders own a combined 2.54 percent or 73.9 million shares in Eton.