Macay Holdings sets stock rights offering

MANILA, Philippines - Macay Holdings Inc., the investment vehicle of Zest-O founder Alfredo Yao, will undertake a stock rights offering to raise funds for the expansion of its bottling facilities, the company said yesterday.

In a disclosure to the local bourse, Macay Holdings said its board approved a stock rights offer at a ratio of one share for every 50 common shares held.

The company intends to offer 21.37 million shares at a value yet to be announced.

Macay Holdings said the shares to be offered shall be taken from the company’s unissued capital stock.

The record date and other details of the stock rights offer are still subject to the approval of securities regulators, the firm said.

Macay’s board of directors has also approved the full acquisition of subsidiary ARC Holdings Inc., which owns the rights to the trademark of RC Cola in the Philippines.

The move is seen to fully consolidate under Macay all the licensing, trademark and related rights currently held by ARC Holdings on the RC Cola brand.

Macay Holdings early this year created ARC, making it the owner of all assets of Asiawide Refreshments Corp., owner of the exclusive license from RC Cola USA to distribute RC Cola in the Philippines, and Mega Asia Corp., operator of RC Cola bottling operations in the country.

Last June, the firm infused more than P2 billion in ARC to finance the acquisition of machinery, equipment, and other assets to be used in the beverage unit’s bottling operations.

The firm is targeting to become a diversified food and beverage company in the next five years through a local expansion program that will take advantage of the improving consumer spending in the Philippines.

Macay Holdings targets to expand its core business through ARC, which holds the exclusive license to manufacture and distribute RC Cola, Fruit Soda Orange, Juicy Lemon and Arcy’s Rootbeer.