MANILA (UPDATE) - Shares of Philippine liquor manufacturer Emperador Inc rose as much 6.6 percent on Wednesday before erasing gains following the lifting of a trading suspension.
Emperador shares rose to as high as P12.98 per share, but later fell to as low as P11.80 after trading resumed following the submission of additional information on its purchase of Scottish whisky company Whyte & Mackay Group Ltd for $729 million, its biggest acquisition to date.
Emperador shares were last traded on Friday at P12.18 before news broke that it bagged the deal to acquire Whyte & Mackay, a unit of India's United Spirits Ltd, which is in turn controlled by Diageo Plc.
Manila's benchmark stock index rose as much as 0.78 percent on Wednesday.
"The market is expecting that the deal is income accretive to Emperador," said Nieves Securities Inc analyst Miko Sayo, but cautioned that some investors were "not bullish about the deal."
In a disclosure Wednesday, Emperador, which mainly manufactures brandy, said its acquisition of Whyte & Mackay is in line with its long-term strategy to grow its product portfolio and global reach.
The deal, which is subject to regulatory approvals in India and the UK, also allows Emperador to tap Whyte & Mackay's global distribution network in more than 50 countries, mainly in Europe and North America.