SMC group gets P2.1B for 17% Rockwell stake

The San Miguel group has raised about P2.1 billion from the sale of a 17-percent stake in upscale property developer Rockwell Land Corp. to the Lopez group.

San Miguel Corp. disclosed to the Philippine Stock Exchange that the sale of 1.04 billion shares of Rockwell at P2.01 per share had been consummated through a cross transaction at the exchange on Friday.

The 1.04 billion shares unloaded by the San Miguel group represented about 17 percent of Rockwell’s 6.1 billion outstanding shares.

Of the total block sold by the group, SMC accounted for 681.65 million shares while subsidiaries San Miguel Pure Foods Co. Inc. and SMC Global Power Holdings Corp. accounted for 166.53 million and 194.62 million, respectively.

The shares held by parent firm SMC represented 11.2 percent of Rockwell and were worth P1.37 billion.

The deal allowed the Lopez group to consolidate a controlling interest in Rockwell at a pre-agreed price, which was lower than the current market price. As of Monday’s morning trade, Rockwell shares was priced at P3.13 per share, giving the company a market capitalization of about P19 billion.

With the 17 percent stake from the San Miguel group, the Lopez group now controls 90 percent of Rockwell. The remaining 10 percent is held by the public.

The selling price per share of SMC was set at the same price at which the group of businessman Manuel V. Pangilinan earlier sold its 25-percent stake in Rockwell.

The San Miguel and Pangilinan groups obtained their shares in Rockwell as a result of a property dividend declaration by Manila Electric Co., which used to own 51 percent of Rockwell. Rockwell afterwards listed by way of introduction or without initial public offering.—Doris C. Dumlao