SBS Philippines receives PSE approval for stock rights offer

SBS Philippines Corp. has secured approval from the Philippine Stock Exchange to proceed with its stock rights offering.

In a disclosure to the stock exchange on Thursday, the listed firm said it received notice that the PSE’s board of directors approved the offering of up to 302 million common shares last Oct. 25.

SBS Philippines noted the final offer price will be computed based on the stock’s volume-weighted average for the 15-day trading period preceding the pricing date, set on Nov. 10.

The shares will be offered to the company’s existing shareholders starting on Nov. 27, and will end on Dec. 5.

The company plans to use the proceeds of the offer to support the capital requirements of its newly- formed subsidiary, SBS Holdings and Enterprises Corp. ( SHEC), pegged at P1.2 billion. SBS created SHEC to pursue investments in businesses holding property-related assets.

SHEC has so far been used to acquire a stake in firms with properties in Mandaluyong City, Quezon City, Cavite, and Bacolod City.

Proceeds will further be used for general working requirements of the company, estimated to be at P292 million.

Incorporated in 2001, SBS has core interests in the trading and warehouse distribution of chemical products for food, industrial, agribusiness, feeds and veterinary care, pharmaceuticals, and personal care and cosmetics industries.

SBS’ net income attributable to the parent slipped to P34.97 million in the first half of 2017, 94% lower year on year. Revenues meanwhile dropped 7% to P528 million for the period.

Shares in SBS added five centavos or 0.85% to P5.95 each at the stock exchange on Thursday. —