San Miguel’s F&B unit seeks to raise $2.7b in share sale

San Miguel Corporation (SMC), one of the Philippines’ largest listed conglomerates, has confirmed the plan of its food and beverage unit to raise up to P142 billion ($2.7 billion) by selling more than one billion existing shares.

In a disclosure to the Philippine Stock Exchange Thursday, SMC said San Miguel Food and Beverage Inc has filed with the Securities and Exchange Commission on August 22 an application for a follow-on offering involving the sale of 887 million common shares owned by SMC, and another 133.05 million to cover over-allotments.

As reflected in the registration statement, the indicative offer price of the San Miguel Food and Beverage shares in the follow-on offering is P140 ($2.6) per share.

The share sale could be the Philippines’ biggest share sale on record, according to a Bloomberg report in April.

“An appropriate disclosure shall be made when the offer price is finally determined and established,” SMC said.

The planned share sale comes after SMC merged three businesses to form the food and drinks unit, which is now worth $12 billion.

Last November, SMC told the PSE that its subsidiary San Miguel Pure Foods Company Incorporated will be called San Miguel Food and Beverage Incorporated as part of the consolidation of its food and beverage businesses.

San Miguel Pure Foods acquired 7.86 billion shares in San Miguel Brewery and 216.97 million shares in San Miguel from SMC. It then issued 4.24 billion shares to parent firm SMC. The consolidation was completed last June 29.

The F&B unit of SMC registered consolidated revenues of P137.4 billion for the first half of 2018, up 15 per cent from the same period last year, as combined net income and operating income went up 20 per cent to P15.4 billion and P22.9 billion, respectively.

 

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

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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

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

  • 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.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.