SMFB cuts FOO size, sets lower price range

Diversified conglomerate San Miguel Corporation (SMC) has reduced the size for its sale of shares of subsidiary San Miguel Food and Beverage (SMFB) amid bearish market conditions.

In a disclosure to the Philippine Stock Exchange, the firm said it has reduced its secondary base offer to 348.64 million common SMFB shares with an upsize option of up to 174.32 million shares or a maximum size of 522.96 million shares.

SMC has also set a narrow price range of 185 to 195 per SMFB share, from its initial maximum offer price of 1140 per share, for a maximum offer value of 149.68 billion.

SMC had initially planned to offer 1.02 billion common SMFB shares, consisting of 887 million secondary shares with an overallotment option of up to 133.05 million shares for a maximum offer size of 1142.8 billion.

It has tapped J.P. Morgan Securities Plc, Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch as the joint global coordinators while Standard Chartered Bank is the financial adviser.

It has also named Deutsche Bank AG Hong Kong Branch and Goldman Sachs (Singapore) Pte. as joint bookrunners while BDO Capital & Investment Corporation and BPI Capital Corporation are the local lead underwriters.

SMC plans to sell the shares to institutional investors as well as local retail investors while a portion may also be offered to yet-unconfirmed cornerstone investors.

SMFB said earlier that the price and terms of offer of the secondary shares will be determined by SMFB management and agreed with SMC.

SMC completed the consolidation of its food and beverage businesses last June 29, 2018, thus, the performance numbers reflect the consolidated financials on a comparative basis with last year.

San Miguel Brewery, Inc. (SMB) continued its solid performance delivering strong volumes for the first half driven by increased consumption of beer products nationwide.