Gokongweis raise P8.8B from JG Summit equity deal

Lance Gokongwei, president of JG Summit. AFP FILE PHOTO

MANILA, Philippines–The Gokongwei group has raised P8.8 billion from an overnight sale of shares in flagship conglomerate JG Summit Holdings Inc., partly to fund the acquisition of a 27-percent stake in utility Manila Electric Co.

In a disclosure to the Philippine Stock Exchange, JG Summit said 220-million shares of JG Summit were sold at P40 per share on Nov. 25 through an accelerated overnight equity placement.

The equity deal was priced at a 4.1-percent discount to Monday’s closing price of P41.70 per share, putting JG Summit shares under pressure on Tuesday when the shares were crossed through block transactions at the local bourse.

Of the shares sold to new investors, 98.082 million consisted of treasury shares freed up by JG Summit while 121.918 million consisted of secondary shares placed out by shareholders.

“The proceeds from the offering will be used to partially fund the Meralco acquisition and for general corporate purposes,” the disclosure said.

In October, JG Summit agreed to pay P72 billion for the 27-percent block held by San Miguel Corp. in Meralco. This was expected to be funded through a mix of equity and debt.

JG Summit said the equity deal was likewise done “in order to widen the shareholder base of the company, and as a response to strong demand for the company’s stock.”

CLSA Limited and UBS AG acted as joint bookrunners for the transaction.

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