SMC sets dividend rates for P 50-B share sale

MANILA  -Conglomerate San Miguel Corp. set the final dividend rates for an upcoming preferred share sale valued as much as P50 billion.

The food, drinks and infrastructure conglomerate said the shares will be issued in up to three subseries. It said Series 2-L will pay a dividend rate of 7.9145 percent, Series 2-N will pay 8.3466 percent and Series 2-O will pay 8.5936 percent.

SMC earlier secured the approval of the Securities and Exchange Commission to sell 400 million preferred shares at P75 apiece plus an oversubscription option for another 266.7 million shares.

This was part of a three-year shelf registration covering 866.67 million preferred shares.

No final timetable yet

SMC, which has yet to issue the final timetable for the offer, previously said proceeds would be used to strengthen its balance sheet by repaying loans and other obligations. It may also use proceeds for its P735-billion New Manila International Airport project in Bulacan province.

SMC had tapped Bank of Commerce, BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers for the deal.

The joint lead underwriters and bookrunners were Asia United Bank, Bank of Commerce, BDO Capital, BPI Capital Corp., China Bank Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., and Union Bank of the Philippines. INQ