San Miguel plans P40-billion preferred share offering

San Miguel Corp. (SMC) is pursuing the shelf registration of up to P40-billion preferred shares to be issued over a three-year period.

In a stock exchange disclosure on Friday, the listed conglomerate said its board of directors has authorized the management to file a registration statement and prospectus with the Securities and Exchange Commission.

The total application would involve up to 533.33 million Series 2 preferred shares, to be issued within three years or within the period that the management would determine.

From the planned P40-billion offering, SMC intends to do an initial offering of approximately up to P20 billion worth of shares, or up to 266.67 million shares at P75 each.

In line with this plan, the board also approved filing for the lifting of the trading suspension and listing application of its Series 2 preferred shares.

“For these purposes, the board has authorized management to determine other relevant terms and conditions of the public offering in accordance with the market conditions as well as the engagement of the services of underwriters, advisors, legal counsels, stock and transfer agent, receiving agent/bank and other agents as may be necessary, property or desirable to effect the offering,” it said.

SMC reported a P4 billion net loss for the six months to June, a turnaround from its P26.15 billion in the same period last year, as the coronavirus pandemic weighed on its fuel and beer businesses.

Shares in the company at the stock exchange gained P1.70 or 1.75% to P99 each on Friday.
— Denise A. Valdez|BusinessWorld

Source: Peso Economics