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Showing posts with label Preferred stock. Show all posts
Showing posts with label Preferred stock. Show all posts

Tuesday, June 19, 2012

Stock News 2012: Gov't to sell P80-B SMC preferred shares

The government will eventually sell its preferred shares in diversifying conglomerate San Miguel Corp., saying that businesses are better off in the hands of the private sector, the Department of Finance (DOF) said yesterday.

If SMC exercises its right to redeem this year the non-voting preferred shares held by the government, the state has no choice but to give this up, Finance Officer-in-Charge and Undersecretary for Privatization John Philip Sevilla said.

Whichever comes first, Sevilla said the end result is an eventual sale of the government’s stake because the government has been trying to leave to the private sector those businesses outside its expertise.

The government’s preferred shares in San Miguel, estimated at roughly P80 billion belong to coconut farmers as ruled by the Supreme Court.

 “We are not in a hurry to sell the preferred shares but eventually we will because the government wants to get out of private businesses,” Sevilla said.

The government holds 753.8 million preferred shares in the diversifying conglomerate. This was equivalent to 24 percent common shares that were converted into non-voting preferred shares in 2009.

SMC has the option to redeem the shares this year, which Sevilla said is a possibility.

“If they redeem it, we have no choice but to just get the cash,” he said.

Proceeds of the redemption or an eventual sale would be used to help coconut farmers, Sevilla said.

In a disclosure to the Philippine Stock Exchange (PSE) early this month, SMC said it was looking to refinance the preferred shares it issued in 2009.

SMC is reportedly looking to raise P80 billion in a preferred shares offering in September, proceeds of which will be used to redeem the shares held by the government.

http://www.philstar.com/Article.aspx?articleId=818599&publicationSubCategoryId=66

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Stock News 2012: First Gen declares cash dividend

First Gen Corp., the renewable energy firm of the Lopez Group, will issue as much as eight percent in cash dividends to holders of various preferred shares.

“The board of directors of First Gen approved the declaration of cash dividends on its perpetual preferred shares,” the company told the local bourse.

Specifically, it will distribute annual cash dividends of eight percent for outstanding Series F preferred shares, 7.7808 percent on 120 million Series G preferred shares and 3.27 percent on 13.75 million Series G preferred shares issued to First Philippine Holdings Corp.

“The cash dividends have a record date of June 29 and a payment date of July 25,” First Gen said.

In a separate disclosure, First Gen said it has used up the entire P10 billion it raised from a share sale early this month.

First Gen said it allotted the bulk of the fresh capital of P9.5 billion for acquisition.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=818609

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Thursday, June 14, 2012

Stock News 2012: SMC boosts Meralco stake to 32.39%

MeralcoMeralco (Photo credit: Wikipedia)
San Miguel Corp. concluded yesterday the purchase of 62.99 million shares of Manila Electric Co. from the Social Security System, effectively increasing its indirect ownership in the power utility giant to 32.39 percent.

In a disclosure to the Philippine Stock Exchange yesterday, San Miguel said the shares were crossed via a special block in favor of unit SMC Global Power Holdings Corp. at P90 each share or a total of P5.67 billion. The transaction was in pursuant to an agreement signed by Global 5000 Investment and the state pension fund in January 2009.

The shares represent around 5.6 percent of Meralco’s outstanding capital stock.

Meralco closed at P243 yesterday, 3.6 percent lower than Monday’s close of P246.60.

Global 5000 took center stage in 2008 when it purchased Meralco shares as a voting ally of San Miguel. Its major shareholders are businessmen Iñigo Zobel, former Trade Minister Roberto Ongpin and condiments king Joselito Campos, all key players behind Top Frontier Holdings Inc., the dominant voting bloc in San Miguel.

The group of telecommunications magnate Manuel V. Pangilinan, through Beacon Asset Holdings Inc., holds a controlling stake in Meralco at 48.02 percent.

Global 5000 paid P1.133 billion to SSS as downpayment, with the balance paid out in three tranches.

The state pension fund sold the shares when the market price then was at P59.5 per share, for a hefty P1.92-billion premium.

Meanwhile, San Miguel disclosed that it was contemplating on selling Series 2 preferred shares but did not indicate how much it was planning to raise from the fund-raising activity.

San Miguel said its board approved the issuance of 1.1 billion Series 2 preferred shares with a par value of P5. Also approved was an increase in the conglomerate’s authorized capital from P22.5 billion to P30 billion, divided into 3.79 billion common shares.

Based on its filing with securities regulators, the Series 2 preferred shares shall be issued in tranches as the board may determine.

San Miguel, one of the largest companies in the country in terms of market capitalization, invested at least $3 billion since 2007 to move away from its traditional food and drinks businesses and venture intofaster-growing sectors such as power, fuel and oil, telecom, mining, banking, property development and infrastructure. It recently added airlines into its business portfolio with the acquisition of a 49 percent stake in Trustmark Holdings Corp. and Zuma Holdings & Management Corp., the holding companies of flag carrier Philippine Airlines and its sister budget airline Air Philippines Corp., respectively.

http://www.philstar.com/Article.aspx?articleId=816932&publicationSubCategoryId=66

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Thursday, May 10, 2012

Stock News 2012: SMB mulls options on public float

Tender Juicy Giants logo.Tender Juicy Giants logo. (Photo credit: Wikipedia)
San Miguel Brewery Inc. (SMB), the flagship unit of diversifying conglomerate San Miguel Corp., said may issue preferred shares to comply with the exchange’s minimum public ownership rule or apply for voluntary delisting should it fail to convince its Japanese partner to dilute its shareholdings.

In a briefing with reporters yesterday, San Miguel Corp. president Ramon Ang said they are meeting with Japan’s largest beer company, Kirin Brewery Co., which owns 48 percent of SMB, to discuss ways on how to meet the minimum public float of 10 percent for listed companies.

“We’ll meet in June, hopefully we can sell together because we don’t want to get diluted,” Ang said.

Should everything else fail, SMB may opt to voluntarily delist its shares from the stock exchange.

SMB, the country’s most valuable listed firm, has a free float of 0.6 percent, according to stock exchange data.

Ang pointed out that SMB has a strong cashflow and does not need to go to the equity market to support its expansion.

As for its food manufacturing arm, Ang said Purefoods is considering selling 10 or 15 percent of the company through a secondary offering or issuance of new shares to increase its public float to at least 10 percent.

http://www.philstar.com/Article.aspx?articleId=805695&publicationSubCategoryId=66

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Friday, January 14, 2011

Stock News 2011: MRC Allied raising P1 B via private placement

MRC Allied Inc. may opt to sell shares via private placement to raise about P1 billion for its mine exploration activities instead of the earlier planned P750-million primary common or preferred share offering.

In an informal briefing, MRC chief finance officer Vicente Laza said they are more inclined towards the fastest means to raise fresh funds since they want to start exploration activities in their two recently acquired mine sites as early as possible.

Since the private placement of shares will dilute existing shareholder, Laza said it’s a possibility that the firm’s major shareholder, Menlo Capital Corporation will be one of the investors in the private placement.

He explained that a rights offering will take at least six months to complete and stringent requirements for rights offers will not give them the flexibility to rechannel funds for the acquisition of more mine sites if the opportunity arises.

MRC chief information officer Miguel Bitanga said they are looking to acquire more mining properties in the next five months with a target of buying three more mine sites this year.

http://www.mb.com.ph/node/298364/mrc-allied-rai


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