JG Summit yet to decide timing for share sale

Reuters

Posted at Jan 27 2011 03:41 PM | Updated as of Jan 27 2011 11:41 PM

MANILA, Philippines - Gokongwei-led JG Summit Holdings Inc. will seek shareholder approval on Thursday for a follow-on offering of more than 2 billion shares, but said it has yet to decide on the timing of the share issue.

At Thursday's closing price of P20, the maximum 2.087 billion common shares up for sale would be worth P41.7 billion ($945 million). The company has said proceeds would repay debt and fund capital expenditure.

JG Summit shares jumped 5.3% on Thursday in a market that rose 1.5%. The stock nearly tripled in value last year, ending at 2010 at P19.60 after hitting a record high of P27 in September and November.

"No timetable yet," Bach Johann Sebastian, senior vice president and corporate planning head at JG Summit, told Reuters about the timing of the sale, which the company announced in December.

IFR reported the mandate for the sale had been awarded to Citigroup and UBS.

JG Summit, the flagship of food-to-airline tycoon John Gokongwei, plans a two-stage fund raising, with the Gokongwei clan selling up to 2.087 billion of its existing common shares. The clan will then buy the same volume of newly issued shares.
Also up for shareholder approval are an increase in the firm's authorised capital to P14.89 billion from P14.85 billion, and the creation of 4 billion voting and non-redeemable preferred shares.

JG Summit, with a market value of $2.9 billion, has interests in the country's largest budget carrier Cebu Air, food via Universal Robina Corp., telecommunications, property and mall development, banking, and petrochemicals.