Tan sells personal stake in AGI

Billionaire Andrew Tan has disposed of his personal stake in Alliance Global Group Inc., the property, food and liquor conglomerate he controls, after selling P7.87 billion in shares to a top global investment fund, a banker Friday said.

The deal highlights foreign investors’ growing interest in the Philippine economy and in businesses like Alliance Global, which caters to the country’s massive consumer market. Alliance Global has been boosting its profile abroad, most recently through the £430-million acquisition of Scotch whiskey-maker Whyte & Mackay Group Ltd. The acquisition was undertaken by its subsidiary Emperador Inc., the Philippines’ biggest liquor company.

Tan, who serves as Alliance Global’s chair and CEO, sold 278 million shares, or a 2.7-percent stake, via an accelerated overnight placement price of P28.30 a share, the company said.

The deal, arranged by UBS AG, priced Alliance Global at a 5 percent discount to its closing price a day before. Alliance Global yesterday fell 3.69 percent to P28.70 a share.

UBS Philippines managing director Lauro Baja III said in an interview that the main buyer was among the world’s biggest funds, although he declined to name it, citing confidentiality reasons.

He said the fund was a long-term investor that was seeking a large exposure in Alliance Global in a relatively short amount of time.

An individual with knowledge of the matter said Tan was initially unwilling to sell, but the “prestige” of the investor convinced the businessman to part with some of his stake.

The presence of big name funds was viewed by the investment community as a sort of stamp of approval, making the company more attractive in future deals, the person said.

Alliance Global is involved in property development mainly through Megaworld Corp. and its joint venture, Travellers International Hotel Group Inc., operator of Resorts World Manila integrated casino. Apart from Emperador, it also operates the McDonald’s franchise in the Philippines.

Alliance Global said earlier that net profit in the first quarter of 2014 rose by 27.5 percent to P6.25 billion as revenues increased by 3.2 percent to P31.2 billion.