SMC pegs preferred share issuance at 73B

Diversified conglomerate San Miguel Corporation is seeking the shelf registration of Series 2 preferred shares worth 73 billion out of the maximum 80 billion earlier approved by its board of directors.

In a disclosure to the Philippine Stock Exchange, SMC said it has filed with the Securities and Exchange Commission a Registration Statement and Preliminary Prospectus for the shelf registration of 975.57 million Series “2” Preferred Shares.

The preferred shares will be offered within a period of three years at an offer price of 75.00 for a total of 73.17 billion.

SMC said it also filed with the SEC an Offer Supplement for the offering of 280 million Series “2” Preferred Shares worth 21 billion with an oversubscription of up to 1200 million Series “2” Preferredd Shares worth 9 billion for a total of 30 billion.

For the initial offer, SMC has tapped as joint lead underwriters and bookrunners Asia Unitedd Bank Corporation, BDO Capital & Investment Corporation, China Bank Capital Corporation, ING Bank N.V. Manila Branch, PNB Capital and Investment Corporation, RCBC Capital Corporation, SB Capital Investment Corporation, Standard Chartered Bank, and United Coconut Planters B Bank.

Bank of Commerce and the trading particip pants of the PSE will be the se selling agents.

SMC said proceeds of the o offering will be principally used to refinance existing US dollar- denominated obligations and for general co corporate purposes. The SMC board had earlier authorized the shelf registration of up to 80 billion worth of Series 2 preferred shares at an offer price of 75.00 per share, equivalent to 1.066 billion preferred shares, to be issued for a period of three years.

SMC president Ramon S. Ang said that the conglomerate, through San Miguel Brewery, Inc., plans to team up with Japan’s Kirin Holdings in bidding for SABMiller PLC's Dutch beer label Grolsch and Italian beer brand Peroni.

Anheuser Busch InBev SA, which agreed to buy SABMiller for $106 billion to create the biggest beer conglomerate in the world. AB InBev is now seeking bids for Grolsch and Peroni to help fund the massive acquisition.

Kirin’s Japanese rival Asahi is reported to be offering $3.41 billion to buy Grolsch and Peroni. If the deal goes through, it would be the biggest overseas beverage acquisition ever by a Japanese company.