San Miguel to sell Pure Foods shares to comply with PSE req't
MANILA, Philippines - Diversified conglomerate San Miguel Corp. is selling up to P7.5 billion worth of its shares in its food manufacturing unit San Miguel Pure Foods Co. Inc. to comply with the stock exchange's minimum public ownership.
The share sale will increase Pure Foods' current public float of 0.08% and meet the yearend deadline by the Philippine Stock Exchange (PSE) to comply with a 10% minimum public ownership requirement.
Maybank ATR-Kim Eng managing director Roberto Benares in a domestic roadshow presentation on Monday, November 12, that the secondary shares will be sold between P240 to P300 per share--a steep discount to the company’s closing price of P700 per share.
The proceeds will be used by San Miguel, which is the selling shareholder, for general corporate purposes. The company has also set aside up to 15% of the offer size to cover over greenshoe option. The offer period is from November 12 to 19.
The company has hired UBS, Maybank-ATR Kim Eng and Standard Chartered Bank to the underwriters for the offering, which is meant to improve the liquidity of a stock and attract more foreign investors.
San Miguel Brewery Inc. and San Miguel Properties Inc still have 0.61% and 0.06% public float, respectively. The brewery unit, partly owned by Japan's Kirin Holdings Co Ltd., has asked the PSE for a 6-month extension to comply with the requirement.
San Miguel-controlled PAL Holdings Inc, the parent firm of legacy carrier Philippine Airlines, has already announced it would voluntarily delist its shares.
Over dozen listed companies have been yet to comply with the float rule. - Rappler.com