Lucio Tan holding company to get P236B in assets

Tanduay Holdings Inc. expects to gobble up P236.5 billion in total assets of the Lucio Tan group as part of its transformation from a beverage unit to the taipan’s umbrella holding firm to be led by heir-apparent Michael Tan.

In a disclosure to the Philippine Stock Exchange, Tanduay disclosed an unaudited combined financial statement in relation to its plan to offer up to three billion shares through a top-up offer.

It was earlier reported that all major local businesses under the group would be folded into Tanduay, including the 90-percent stake in beer brewer Asia Brewery, at least 83 percent of cigarette manufacturer Fortune Tobacco Corp., 98.1 percent of Eton Properties Philippines, 49.84 percent of flag carrier Philippine Airlines, 50.97 percent of budget carrier Air Philippines Corp., 34.79 percent of Philippine National Bank and 27.62 percent of Allied Bank. As part of the consolidation, Tanduay will be renamed LT Group Inc.

The Tan group chalked up P3.2 billion in     net profit attributable to parent equity holders in the first semester of the year on the back of P59.2 billion in revenues. Gross profit was estimated at P7.3 billion. Equity attributable to LT Group was estimated at P64.4 billion.

Tanduay had disclosed plans to undertake an equity placement initially with the sale by its controlling stockholder Tangent Holdings of up to three billion shares at a price to be determined at the end of a book-building process. Using proceeds from the sale of those secondary shares, Tangent will subscribe to the same number of new shares of Tanduay in an amount not exceeding the number of secondary shares placed out and likewise at the same price per share.

This means that the transaction will eventually bring in new money for Tanduay as Tangent will only be lending its shares for a quicker equity deal.

The new shares to be issued by Tangent will be listed with the Philippine Stock Exchange, subject to compliance with the requirements for listing.

Tanduay shares closed yesterday at P11.92 billion, down 3.7 percent, giving it a market capitalization of P49.29 billion.