MANILA - San Miguel Corp, the Philippines' most diversified conglomerate, plans to sell P80 billion ($1.9 billion) worth of preferred shares in what would be the country's biggest corporate share issue, a local newspaper reported on Wednesday.
The company was looking to launch a perpetual preferred share offer in August to refinance 72 billion pesos worth of costly preferred shares issued to stockholders, including the government, in 2009, the Philippine Daily Inquirer reported, citing an unnamed source.
"It is a plan," San Miguel President Ramon Ang said via a mobile phone text message when asked for comment on the report. He did not give further comments.
In a disclosure to the stock exchange, San Miguel confirmed it was contemplating an issue of Series 2 preferred shares and an increase in its authorized capital stock, but did not give an amount. It added the share issue and hike in capital stock would be presented for approval by stockholders at a meeting on Thursday.
San Miguel's share sale will be bigger than BDO Unibank Inc's planned stock rights offering this month, which could raise as much as $1 billion.
Shares of San Miguel were up 0.1 percent in early trade as the broader market was down 0.2 percent.
San Miguel has spent at least $3 billion since 2007 for its aggressive acquisitions away from its traditional food and drinks businesses and into sectors such as energy, telecoms, mining, banking, and infrastructure. It recently added airlines when it bought in its business portfolio.