San Miguel gets SEC nod for P80B share issue


Posted at Aug 10 2012 05:46 PM | Updated as of Aug 11 2012 07:57 PM

MANILA, Philippines - San Miguel Corp.'s P80 billion preferred shares issuance was approved by the Securities and Exchange Commission en banc.

Based on its filing with the SEC, the conglomerate will issue 1.067 billion Series 2 preferred shares. This consists of 960 million primary shares and 107 million shares to cover oversubscription. The issue price is P75 per share.

The preferred shares will be redeemable in 5, 7 and 10 years and will carry an interest rate of 7.5%, 7.635% and 8%, respectively.

San Miguel will use the proceeds from the offering to redeem all the existing P72.8 billion preferred shares issued to stockholders, including the government, in 2009. 

The rest will be used for partial repayment of short term debt. San Miguel has short term debt of P13.9 billion as of end June.

The offer period will run from August 13 to September 14. Listing date will not be later than October 12.

The diversified conglomerate has spent at least $3 billion since 2007 for its aggressive acquisitions away from its traditional food and drinks businesses and into energy, telecoms, mining, banking, infrastructure and airlines.