MANILA, Philippines - Tanduay Holdings Inc. is issuing up to 3 billion shares in a massive equity placement to help support a landmark restructuring program that will see the rum-maker transform into the main holding company for the business assets of businessman Lucio Tan.
A filing to the Philippine Stock Exchange (PSE) on Thursday showed that Tanduay will issue shares in a placement and subscription transaction. At Tanduay’s current market price, the offer would be valued at P37.2 billion.
The disclosure added further that Tanduay’s board of directors will determine the timing and final size of the offer.
The executive committee of Tanduay, which will be renamed LT Group Inc., will be headed by Lucio Tan as chairman, the disclosure showed. Its members will include Harry Tan, Michael Tan, Lucio Tan Jr., Juanita Tan Lee, Florencia Tarriela and Antonio Alindogan Jr.
The placement will also help Tanduay meet the requirement minimum public-ownership level set by the PSE. At present, Tan-led Tangent Holdings Corp. owns 95.25 percent of Tanduay, leaving just 4.75 percent in the hands of the public.
As part of its restructuring plan, Tanduay will acquire unlisted Tan-owned companies Asia Brewery Inc. and Fortune Tobacco Corp. It will also acquire listed Eton Properties Philippines Inc., 49.84 percent of flag carrier Philippine Airlines and 50.9 percent of Air Philippines, a budget carrier as well as the 34.79-percent stake in Philippine National Bank and 27.62 percent in Allied Banking Corp.
Tanduay shares declined 4.47 percent to P12.40 each on Thursday.