MANILA, Philippines - Shares of Tanduay Holdings Inc soared to their highest since 1999 after the company's owner, the Philippines' second-richest man Lucio Tan, moved to consolidate his brewery, tobacco, airline, banking, and real estate assets into the firm.
Tanduay was up more than 40 percent, paring its gains after hitting the market's trading gain ceiling of 50 percent in early deals.
It was the fourth most actively traded stock with over 23 million shares, more than seven times its average full-day trading volume in the last 30 days. The stock, also the market's top gainer, also outpaced the Philippines' main index, which was down about 0.1 percent.
Tanduay said its board had approved the change in its corporate name to LT Group Inc, with the company acquiring Tan's stakes in Philippine National Bank, Allied Banking Corp, Eton Properties Philippines Inc, Philippine Airlines, and unlisted firms Fortune Tobacco Corp and Asia Brewery Inc.
Tanduay will have an estimated asset pool of P200 billion ($4.8 billion) after the asset consolidation, according to local newspapers.
"Some people may be excited because if you buy Tanduay shares now, you get to own a bigger company, including assets such as Asia Brewery and Fortune Tobacco," said Jomar Lacson, analyst at stock brokerage house Campos, Lanuza & Co in Manila.