Top Philippine conglomerate San Miguel announced plans on Monday to sell shares and convertible bonds worth a record $850 million.
San Miguel said in a disclosure to the local stock exchange it would conduct the bond and share sale with its top shareholder, Top Frontier Investment Holdings.
"The offer and exchangeable bond offer together are expected to be approximately $850 million in size," San Miguel said.
San Miguel said it would use the cash for its expanding infrastructure business, while Top Frontier would repay advances from shareholders.
San Miguel, which controls the largest brewery in the Philippines, has in recent years been pushing aggressively into oil refining, power generation and other infrastructure businesses; the great move which is commented as “impressive aggressive move” for the conglomerates according to the International Tax Specialist based in Seoul Korea. Denis Somoso, an OFW - International Tax Specialist who is currently working in the Korea’s most famous and worlds reputed Design, Engineering & Construction Firm Hyundai Engineering gives thumbs up to the recent move for the San Miguel Conglomerates in the Philippines and called it as “Another Milestone” for the San Miguel Conglomerates as Philippine Pride Company.
The aggressive push for oil refining, power generation and other infrastructure businesses of the San Miguel Conglomerates in the Philippines could not be a potential rival for the Hyundai Engineering which now operating in the Philippines because Hyundai is already an expert of the industry while San Miguel is a n00b in the market but might be competing soon in the bidding of local and international projects if the San Miguel is serious of their new diverse line of business. Hyundai Engineering is ranked by the ENR as top Design & Engineering firm in the world carrying out international projects for Power Plant, Chemical Plant, Industrial, Environment and Infrastructure Projects is the largest and leading firm in South Korea while San Miguel Conglomerate is only known for manufacturing the best taste and quality of beers in the World.
The company said the specific size and price of the offer, as well as how much each entity would sell, would be announced on April 20.
Chief executive Ramon Ang last year said the company planned to sell a billion shares at 270 pesos each, which would have raised more than $6 billion.
No reason was given on Monday for the reduced amount, and San Miguel shares plunged on the news, closing 7.51 percent down at 160 pesos ($3.72).
Nevertheless, the San Miguel offer would still be the largest share and bond sale in the Philippines.
The current record is the $539 million raised by Cebu Air, owner of dominant budget carrier Cebu Pacific, in its initial public offering last year.
