SMC readies sale of preferred shares

MANILA, Philippines - San Miguel Corp. (SMC) plans to raise fresh funds this year from the re-issuance and private placement of 300 million preferred shares.

In a disclosure to the Philippine Stock Exchange, SMC said its board approved yesterday the re-issuance and private placement of 300 million Series 1 preferred shares to be taken from the company’s treasury shares.

SMC did not disclose further details of the share sale such as its pricing and timetable.

“The terms and conditions of the issuance shall be in accordance with the amended articles of incorporation of the company. The company shall make additional disclosures relating to the aforementioned private placement upon the execution of the definitive agreements with the subscribers,” the food-to-infrastructure conglomerate said.

A private placement is a direct offering of securities to certain investors, catering mostly to institutional investors such as insurance companies and pension funds.

SMC in 2012 redeemed shares of its Series 1 preferred shares.

SMC’s Series 2A preferred shares’ trading price closed at P76.10 apiece yesterday.

In a separate filing to the local bourse, SMC said its board of directors also confirmed and ratified the transfer of 48.47 percent of the outstanding shares in Atlantic Aurum Investments B.V. to wholly-owned subsidiary San Miguel Holdings Corp.

Atlantic Aurum is the parent firm of the companies holding the concession rights over the South Luzon Tollway and the Skyway System.

Following the transfer of shares, SMC said San Miguel Holdings now holds 95 percent of Atlantic Aurum.

“The board also approved the consolidation of the Skyway and South Luzon Expressway tollway businesses into the books of the company, and the inclusion thereof in the subsequent events in the 2015 audited financial statements of the company,” SMC said.