MANILA, Philippines—Conglomerate San Miguel Corp. is raising P20.96 billion from the sale of preferred shares, with the proceeds seen to mainly finance the redemption of debt listed in Singapore.
SMC said in a stock exchange filing on Wednesday that it had executed subscription agreements for the sale, via private placement, of 279.41 million Series “1” preferred shares to three entities.
The perpetual, cumulative and non-voting shares were priced at P75 each and will pay a dividend rate of 5.635 percent a year. The company has the option to redeem the shares three years from the issue date, the filing showed.
SMC noted that the deal was still subject to certain closing conditions. The three companies that subscribed to the preferred shares were Gingoog Holdings Corp. (83.82 million shares), Lucena Holdings Corp. (89.41 million shares) and Metroplex Holdings Corp. (106.17 million shares).
There was still room to raise more funds as the company’s board approved the sale of as many as 300 million Series “1” preferred shares last March 26.
SMC said last March 16 that it was holding a tender offer for up to $400 million ( P17.8 billion) of its $800 million, 4.875 percent notes due in 2023. The notes are listed on the Singapore Exchange Securities Trading Ltd.
SMC said the tender offer expired on April 1, 2015.
SMC, which has expanded its traditional beer and food business to include new lines such as tollroads, power and oil refining, posted a net recurring income of P27.9 billion in 2014, up 244 percent.
It attributed the gains to the growth across its traditional and new businesses. The increase excluded the one-time gain registered in 2013 from the sale of its shares in Manila Electric Co., which brought its net income at that time to P50.7 billion.
Consolidated sales revenues reached P782 billion, 5-percent higher than the previous year, as majority of its businesses posted higher sales, while operating income improved 1 percent to P55.8 billion, SMC said.
Meanwhile, consolidated earnings before interest, taxes, depreciation and amortization or Ebitda reached P88.1 billion, 14-percent higher than the 2013 level. Miguel R. Camus