Stock News 2013: Del Monte eyes dual listing in Philippines, Singapore markets

Del Monte Fresh Produce Pineapple (Photo credit: Del Monte Fresh Produce)

Del Monte Pacific Ltd., controlled by condiments king Joselito D. Campos Jr., is planning a dual listing in the Singapore and Philippine stock markets.

This will make Del Monte the first local firm to be listed in both the Singapore Stock Exchange (SGX-ST) and Philippine Stock Exchange (PSE).

In a disclosure to SGX-ST, Del Monte said it submitted to the PSE and Securities and Exchange Commission an application for a listing by way of introduction.

“The proposed dual listing will provide the company with a platform to widen its investor base,” Del Monte said.

“In particular, it will enhance the company’s attractiveness to investors in the Philippines and to foreign investors interested in the Philippine stock market,” it added.

Listing by introduction allows a firm to join the PSE without having to sell shares to the public immediately.

Del Monte said being listed on both the SGX-ST and PSE will “enhance the profile and market visibility” that will result in greater liquidity.

Being a public company attracts coverage from brokerage firms, which provide valuations and recommendations to the investing public.

“The proposed dual listing will also allow the company to establish financing platforms in two different equity markets simultaneously,” Del Monte said, adding that extra channels and ready access to a wide pool of capital will fund future business growth.

Given its plan to list by way of introduction, Del Monte said it will not immediately issue new shares but there might be an offer of vendor shares depending on the market’s condition.

Vendor shares are stocks issued by a company in payment or in part payment for assets acquired from the vendor.

Aside from Del Monte, PSE-listed tuna and salmon processor Alliance Select Foods International Inc. is planning to conduct a dual listing in the Singapore and Philippine bourses.

Del Monte produces, markets and distributes food, beverages, and related products in the Asia-Pacific region and the Indian subcontinent, and has supply deals with Del Monte trademark owners and licensees around the world.

The NutriAsia Group of Campos owns a majority stake in Del Monte. NutriAsia leads the Philippine market for condiments, specialty sauces and cooking oil.

In 2012, sales of Del Monte climbed eight percent to a record $459.7 million while net profit jumped to $32.1 million.

http://www.philstar.com/business/2013/04/26/934907/del-monte-eyes-dual-listing-phl-spore-markets

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Stock News 2013: SEC okays Asia United Bank listing on PSE

English: Phillippine stock market board (Photo credit: Wikipedia)

The Securities and Exchange Commission has approved a plan by the Rebisco group’s commercial banking arm Asia United Bank to debut on the Philippine Stock Exchange and sell as much as P9.68 billion in shares of stock.

AUB plans to sell up to 88 million primary common shares for as much as P110 per share. The base offer consists of 80 million shares while additional 8 million shares were set aside for overallotment.

This offering, which will take place on May 7 to 14, will bring to public hands around 30 percent of the bank’s post-IPO capitalization. IPO pricing will be finalized by May 3 while listing on the PSE is targeted on May 17.

UBS AG Kong Kong branch and Credit Suisse (Singapore) Ltd. have been mandated as the joint bookrunners and joint lead managers for this offering. Mandated as sole global coordinator is UBS AG.

AUB is owned by a diverse group of Asian investors engaged in property development, manufacturing, and other equity ventures. Rebisco, the Philippines’ leading manufacturer, distributor, and exporter of snack food products for the past 49 years, is the biggest shareholder of the bank.

In 2012, AUB posted a 20-percent growth in net profit to P1.36 billion attributed to robust trading and lending activities. The 15-year-old bank, which aspires to be a more significant player in the Philippine banking system, expanded its balance sheet last year by 27 percent to P63.35 billion while its capitalization went up by 25 percent to P11.5 billion. Capital adequacy ratio to risk assets stood at 15 percent versus the minimum requirement of 10 percent.

http://business.inquirer.net/118169/sec-okays-asia-united-bank-listing-on-local-bourse

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Stock News 2013: Victorias Milling plans diversification

English: Taken by Neutronic (Photo credit: Wikipedia)

Sugar firm Victorias Milling Corp. plans to diversify into allied businesses to strengthen operations ahead of a low-tariff regime under the Asean Free Trade Area (Afta) by 2015.

Within the next two years, VMC may raise fresh funds to go into new ventures, first of which will be power co-generation, then bio-ethanol production and allied infrastructure like co-investing in a railroad system to transport sugarcane.

“The challenge is Afta, but we’re transforming VMC,” company chairman Wilson Young said in an interview at the sidelines of the company’s stockholders’ meeting last week.

VMC has obtained consent from its shareholders to amend its secondary purpose under the charter to allow the co-generation of electricity for its own use for lighting and other purposes. In addition to the leeway under its existing charter to go into manufacturing, agricultural, educational, mercantile, insurance, trading, real estate and fiduciary businesses, more amendments were made to include infrastructure, transportation, telecommunications, mining, water, power generation, recreation, financial or credit and consultancy.

In manufacturing, it was specified in the amendment that this would include but not be limited to ethanol and potable alcohol production, harnessing synergies from its sugar milling operations.

Young explained that the company was not planning to pursue all these activities, but only needed the flexibility. The amendments will be presented for approval by the Securities and Exchange Commission and creditor-banks.

“We definitely need new money,” Young said, when asked how new ventures would be funded. “We will study that; maybe in the next two years we can tap new loans again.”

Power co-generation could be prioritized, he said, because the feed-in-tariff (to encourage renewable energy) was already put in place by the government.

http://business.inquirer.net/107003/victorias-milling-plans-diversification

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Stock News 2012: Ayala, Rustan’s plan dep’t store chain

Shangri-La Plaza (Photo credit: Brian Sahagun)

Ayala Land Inc. will soon debut into the department store retailing format in partnership with the Rustan’s group by investing in the anchor tenant of a new Ayala shopping center rising in Fairview, Quezon City.

This will implement an earlier announced equal joint venture with the Tantoco family’s Specialty Investments Inc. (SII) to “pursue opportunities in the Philippine retail sector.”

ALI and Rustan’s are likewise investing in the 24-hour convenience store business under Japanese retailing chain FamilyMart, the world’s second-largest convenience store operator.

Although a late entrant in the high-volume but low-margin retailing business in department store and convenience store businesses, ALI is confident that having Rustan’s as a partner would create a “formidable” alliance that could effectively compete in this segment, said ALI chief finance officer Jaime Ysmael.

In a talk with reporters at the sidelines of the Securities and Exchange Commission hearing on foreign capital computation, Ysmael said ALI was now developing a new mall—Fairview Terraces—whose anchor tenant would be a department store co-owned by the Ayala-Rustan’s partnership. Typically, he said the anchor tenants in Ayala’s shopping centers would occupy about 10,000 square meters of retail space like Landmark (in Glorietta and Trinoma) or Gaisano (in Market!Market!).

“We haven’t come up with the name yet,’ Ysmael said, when asked what would be the branding for the upcoming Ayala-Rustan’s department stores. “Close to opening, that should be available,” he said. Parkview Terraces is expected to open by the end of next year.

This would not mean that ALI would no longer provide retail space to other department store operators in other upcoming malls, Ysmael said. “We will still have that kind of relationship with existing partners. It’s just that we want to put up our own so that we can move faster than that we’ll be able to do if we don’t have our own department stores. But those (other) stores will continue. They are longtime partners,” he said.

Ysmael said Rustan’s, apart from being the dominant retailer for the high-end segment, had a vast experience in the broader consumer market through its Shopwise grocery chain. “We’re confident that the partnership will be able to compete,” he said.

For the convenience store business, which is in partnership with FamilyMart and Japanese conglomerate Itochu, Ysmael said this should also be a “formidable” retail format.

The partnership is investing about P200 million to jumpstart the business. While the initial target is to set up 30 stores in the first year of operations, Ysmael said it should roll out “a couple of hundred stores to be able to make a difference.” As Ayala has hundreds of property developments across the country, Ysmael said the rollout should not be a problem.

“We’re positioning also in other areas, not just in our developments, but the priority is to locate in our developments,” he said.

http://business.inquirer.net/92476/ayala-rustans-plan-dept-store-chain

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Stock News 2012: Manila Water gets top credit rating

Manila Water Company (Photo credit: Wikipedia)
Ayala-led Manila Water Co. Inc. obtained the highest issue credit rating of PRS Aaa from Philippine Rating Services Corp.

A triple A credit rating is deemed “of the highest quality with minimal credit risk” and that the borrower’s capacity to meet financial commitment on the obligation is extremely strong.

PhilRatings is the only domestic credit rating agency in the country accredited by both the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission.

In assigning the rating, PhilRatings took into account Manila Water’s proactive management and competent technical staff with a proven track record; the company’s efforts to expand its service areas to ensure continued growth; sustained profit performance; more than adequate liquidity position, financial flexibility and capitalization which can support additional debt.

Manila Water is the exclusive concessionaire for the East Zone of Metro Manila, comprising 23 cities and municipalities. It continues to expand its market locally with projects in Laguna, Pampanga, Boracay and Cebu. It also has international ventures in Vietnam.

“Throughout its operating history, the company has been able to meet and even surpass its regulatory and financial targets, making efficient use of its capital, accumulated industry experience and partnerships. The company’s management has also been very proactive in dealing with issues relating to the water industry, such as the development of new water sources,” PhilRatings said.

Manila Water chalked a net income of P4.27 billion in 2011, up seven percent from a year earlier. It sustained upward traction in the first quarter this year with net earnings rising 64 percent to P1.34 bilion.

As of end-2011, the company had comfortable levels of cash and short-term investments amounting to P5.89 billion. The amount further increased to P6.45 billion at the end of the first quarter 2012.

PhilRatings said the projected growth in Manila Water’s retained earnings is expected to support additional debt.

The company is currently undergoing its third rate rebasing period as the concessionaire of the East Zone. Rate rebasing occurs every five years after 1997, when the company was awarded the concession.

Manila Water has already submitted the requirements for the process to the regulators and is expecting feedback within the year.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=820593

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Stock News 2012: SMIC earmarks P5 billion for hotel project

SM Investments Corporation (Photo credit: Wikipedia)
SM Investments Corp. (SMIC), the holding firm for the various business of the family of the country’s richest man Henry Sy, has earmarked almost P5 billion for the construction of two hotels under the Luxury brand.

Based on documents submitted to the Securities and Exchange Commission (SEC), SMIC has appropriated around P4.93 billion out of the total proceeds from its fixed-rate bond issue for two hotel projects to be built at the Mall of Asia complex and in Looc, Batangas.

A big chunk, or P3.4 billion, will go to Luxury City Hotel, an upscale hotel that will have approximately 400 rooms.

The balance of P1.53 billion will be channeled to the 400-room Luxury Hotel in Santelmo, Batangas. “This will be a resort,” said SMIC chief financial officer Jose Sio.

Sio said the design and costing are still being prepared.

SMIC’s hotels and convention centers segment is aiming to offer 1,000 hotel rooms by 2013.

The group is currently building the P750-million Park Inn Radisson Hotel in Davao City’s Lanang District, the first Park Inn Radisson in the Asia Pacific region.

Targeted for opening in the first quarter of 2013, the 204-room Park Inn hotel will be located within the 175,000-square meter mixed-use complex owned and developed by SMIC’s shopping mall subsidiary SM Prime Holdings Inc.

The Park Inn brand is one of the hotel brands under Carlson and is the largest mid-market brand for hotels under development in Europe.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=815940

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Stock News 2012: Filinvest Land gets SEC okay to issue P11-B bonds

Metro Manila Transit Hino NYD-338 (fleet No 782) with Jeepneys in A. Mabini Street, Ermita, Manila, Philippines. (Photo credit: express000)
Gotinuan-led Filinvest Land Inc. has obtained the green light from the Securities and Exchange Commission to issue P11 billion worth of seven-year fixed-rate bonds.

The bonds will be issued in two tranches, the first in June and the balance in the third quarter.

FLI has tapped BDO Capital and Investment Corp., BPI Capital Corp. and First Metro Investment Corp. as joint issue managers.

The bond issue was assigned a PRS Aaa rating – the highest level on the ratings scale of credit issuer agency PhilRatings.

Proceeds from the offering will be used to partly fund FLI’s P15-billion capital expenditure program this year.

About P5.4 billion has been earmarked for the construction of medium-rise buildings (MRBs) in Metro Manila, Davao and Rizal. Another P3.8 billion has been set aside for the development of properties in Metro Manila, Cavite and Cebu. The rest will be spent for developing subdivisions, acquiring land and building high-rise projects.

FLI is rolling out P14.5 billion worth of projects this year, 20 percent higher than the previous level. These projects translate to over 12,000 units.

New projects include a condotel at Timberland Heights and two new MRB projects within Metro Manila.

Around P2.5 billion of this year’s capex would go to the construction of additional office and retail space.

http://www.philstar.com/Article.aspx?articleId=808345&publicationSubCategoryId=66

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Stock News 2011: SMIC expects better Q3, on track for double-digit growth

Conglomerate SM Investments Corporation (SMIC) expects its third quarter performance this year to be better than the same period in 2010 as Filipinos remain optimistic about their prospects.

In an interview at the sidelines of a forum organized by the Economic Journalists Association of the Philippines, SMIC chief finance officer Jose Sio said sales this year is being boosted by higher consumer spending.

He noted that this is due to strong remittances from overseas Filipinos as well as the large number of business process outsourcing firms all over the country which is providing employment and resulting in more disposable income.

However, Sio noted that, traditionally, earnings in the second quarter is seasonally better than in the third quarter.

He also disclosed that SMIC is on track to hit its targets this year as indicated by its first half results. “The indication is the same as of now. We can fulfill, if not better, our original budget,” Sio said.

SMIC registered a 13 percent growth in net income to P9.64 billion in the first half of 2011 from P8.53 billion during the same period in last year.

Consolidated revenues increased 9 percent to P92.94 billion as compared to P84.99 billion in the first semester of 2010.

The robust performance of SM’s property group, particularly its residential development business, and the sustained growth of its banking subsidiaries contributed to the company’s positive results for the period.

http://mb.com.ph/articles/334380/smic-expects-better-q3-track-doubledigit-growth

International News 2011: Subway Passes McDonald's

Image via Wikipedia
It's official: the Subway sandwich chain has surpassed McDonald's Corp. (NYSE: MCD - News) as the world's largest restaurant chain, in terms of units.

At the end of last year, Subway had 33,749 restaurants worldwide, compared to McDonald's 32,737. The burger giant disclosed its year-end store count in a Securities and Exchange Commission filing late last month.

The race for global dominance is an important one for an industry that's mostly saturated in the U.S. High unemployment and economic uncertainty have battered the restaurant industry in the U.S., and chains are increasingly looking overseas for growth, particularly in Asia.

Starbucks Corp. Honda (Nasdaq: SBUX - News) recently said it plans to triple its number of outlets in China, for example. Dunkin' Brands Inc., parent of Dunkin' Donuts and Baskin-Robbins, plans to open thousands of new outlets in China in coming years as well as its first stores in Vietnam in the next 18 months. Subway just opened its 1,000th location in Asia, including its first in Vietnam.

http://finance.yahoo.com/family-home/article/112284/subway-passes-mcdonalds

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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