GIC invests $391m to buy 9.64% in Emperador

Brand visual from the company website

By Team DealStreetAsia

November 11, 2014

Singapore’s sovereign wealth fund GIC Private Ltd has bought just under 10% in the Philippine liquor firm Emperador Inc for 17.6 billion pesos ($391 million), making it the fund’s third direct investment in the country this year.

Emperador Inc, the world’s largest brandy maker, said that this would be an initial investment by GIC, adding that the Singapore-based fund has an option to invest an additional 4.4 billion pesos in the company at 11 pesos per share, during the next 13 months. If GIC exercises this option, it’s stake in the liquor firm will increase to just under 12%.

GIC has already invested in two Philippine companies – Metro Pacific Investments’ hospital business and Century Canning Corporation, in this fiscal. The fund acquired about 14.4 % stake in Neptune Stroika Holdings, that runs the Metro Pacific’s hospital business for $84 million, with a further provision to acquire additional 25.5% stake by swapping 6.5 billion pesos worth of bonds for company equity.

Similarly, about 3.4 billion pesos ($95.7 million) were invested in Century Canning, by the GIC, as a 5% loan with a provision to convert it to 11% share in the company.

Meanwhile, Emperador had bought world’s fifth largest scotch whisky maker Whyte & Mackay (makers of Jura and Dalmore Scotch whiskies) from India’s United Spirits Ltd for $681 million, earlier this year. This acquisition was made in a bid to expand the liquor company’s global operations, for which, it had announced plans to raise $465 million.Emperador was advised by Macquarie for the India deal.

The deal with GIC will see the Singapore fund pay 12.32 billion pesos for a 6.95% equity stake while the rest of the investment (5.28 billion pesos ) will be routed through the equity linked securities that have a seven-year term and can be converted to 480 million common shares of the firm. As per the terms of the deal, GIC will buy Emperador shares at 11 pesos per share. Emperador was advised by UBS AG for this transaction.

According to its website, GIC is among the world’s largest fund management companies that manages Singapore’s foreign reserves. Since its inception, GIC has grown from managing a few billion dollars to well above US$100 billion, today.

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Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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