San Miguel halves food unit share sale, seeks $920 million
MANILA/SINGAPORE — Philippine conglomerate San Miguel Corp. said it is looking to raise about $920 million through a sale of shares in its food unit, slashing the size of the offering by almost half due to weakness in the stock market.
The sale of a minority stake in San Miguel Food and Beverage is part of the parent firm’s restructuring plan that was announced in August 2017.
In a regulatory filing to the stock exchange, the food unit said San Miguel is seeking to sell a total of 523 million shares in a price range of P85 to P95 per share.
This excludes an over-allotment option of up to 15 percent of the offering.
The price range compares with regulatory filing figures of up to 1.02 billion shares on offer and of up to P140 per share, a premium of about 75 percent to the unit’s trading price at the time of the announcement of the plan.
While regulatory filing prices are often set far above expected book building ranges in the Philippines, it is not common for the number of shares on offer to be cut.
Earlier on Thursday, San Miguel President Ramon Ang offered varying statements to reporters about potential pricing, saying both that the shares could be priced at P90 to P100 and that they could be priced between P85 and P100.
“Weakness in stock markets has put further pressure on the pricing,” said one source, who did not wish to be identified as he was not authorized to speak to the media.
San Miguel plans to use proceeds from the share sale to invest in its business, but it did not provide details. The conglomerate is pursuing an aggressive expansion plan that involves venturing into infrastructure, mining, petroleum and power generation to boost revenues. —