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Yao-led Macay Holdings eyes P1B from sale of new shares

/ 06:30 PM October 16, 2014

MANILA, Philippines—Macay Holdings Inc., which is led by businessman Alfredo Yao, has firmed up a plan to raise about P1 billion in fresh capital from the sale of new shares to existing shareholders.

In a disclosure to the Philippine Stock Exchange on Thursday, Macay said its board had approved an offering of 21.368 million shares. One rights share will be offered for every 50 common shares held by an existing investor.

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If based on its current market price of about P48 per share, the proposed stock rights offering is worth around P1 billion. Proceeds will be used for the expansion of bottling facilities, according to the company.

Alfredo Yao. PHOTO BY LYN RILLON

Alfredo Yao. PHOTO BY LYN RILLON

The rights’ offering is subject to the registration or exemption requirements, whichever may be applicable, of the Securities and Exchange Commission and the Philippine Stock Exchange.

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Formerly the shell company for Maybank ATR Kim Eng Financial Corp. (MAKE), Macay incorporated ARC Refreshments Corp. in 2013 to engage in the business of trading goods such as beverages on wholesale basis. ARC Refreshments in turn acquired substantially all the operating units of Asiawide Refreshment Corp. and Mega Asia Bottling Corp.

Asiawide holds an exclusive license from RC Cola USA to manufacture and distribute RC Cola in the Philippines while Mega Asia operates the RC Cola bottling and manufacturing operations in the Philippines. It is based in Caloocan but it also has operations in other areas like Pampanga and Davao.

It was earlier disclosed that Macay would also acquire 100 percent of ARC Holdings, an affiliate company holding the franchise of soft drink brand RC Cola in the Philippines and some other Southeast Asian companies. By gobbling up ARC Holdings, Macay fully consolidates all the licensing, trademark and related rights on the RC Cola brand.

ARC Holdings is a separate entity under the same Yao-led group that holds the trademark licenses of Royal Crown Cola, which in turn owns the rights to the trademark of RC Cola in the Philippines.

At present, the group operates nine RC Cola bottling plants in the country. As the group is the biggest bottler of RC Cola in the region, Royal Crown Cola of Georgia USA has expressed interest to give the group “anchor bottler” status in Southeast Asia.

In the carbonated beverage segment, RC Cola’s estimated market share in Metro Manila is 20-24 percent. The company also estimates that it has yet to penetrate 25-30 percent of overall market nationwide.

The group plans to grow a combination of licensed and company-owned brands. At present, homegrown brands include juice products like Juicy Lemon and California Fruity Orange.

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TAGS: Alfredo Yao, Business, capital buildup, capital raising, macay holdings, Philippine Stock Exchange, share sale
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