JG Summit raises P12 B from sale of URC stock

MANILA, Philippines — The Gokongwei holding company JG Summit Holdings Inc. has raised P12 billion from the sale of a 4.7 percent stake in food unit Universal Robina Corp. through an overnight private placement.

JG Summit, which is seen to be raising funds to pay for its investment in Manila Electric Co., announced on Friday the sale of 105 million shares in URC at a price of P115 per share, or a 6.5 percent discount from Thursday’s closing price.

After the sale, JG Summit will continue to hold a controlling 55.7 percent stake in URC. The conglomerate said proceeds would be used “for general corporate purposes.”

Credit Suisse (Singapore) Ltd. acted as sole bookrunner for the sale.

JG Summit recently struck a deal to buy the San Miguel group’s 27 percent stake in Meralco, the country’s largest power distribution company, for P72 billion. As much as 40 percent of the purchase price is expected by analysts to be funded by equity and the remaining 60 percent through debt.