Tanduay Holdings Inc., which will handle the consolidated assets of the Lucio Tan group, has acquired new shares of Fortune Tobacco Corp.
This will give Tanduay an 82.32-percent control of the tobacco company.
The takeover by Tanduay of a controlling stake in Fortune Tobacco will take effect upon the approval by the Securities and Exchange Commission of Fortune’s application for increase in authorized capital.
In a disclosure to the Philippine Stock Exchange, Tanduay said it had subscribed to an additional 1.3 billion common shares of Fortune with a par value of P1 per share to be issued out of the capital increase of the latter. Tanduay paid the subscription in cash.
In late September, Tanduay president Michael Tan said the group was “more than halfway through” the consolidation of major businesses and that Tanduay was poised to proceed with an equity offer of up to three billion shares before the end of the year or early next year.—Doris C. Dumlao