Consolidating Lucio Tan group hikes stake in Asia Brewery
MANILA, Philippines - Asia Brewery Inc. is now almost wholly owned by the listing holding company of tycoon Lucio Tan, LT Group Inc., as part of consolidation efforts.
LT Group's board approved the purchase of additional shares in the beer maker, raising its stake to 99.99% from 90%.
Likewise, it approved the acquisition from its controlling shareholder, Tangent Holdings Corp., of certain receivables in the total amount of P9.9 billion.
“Said acquisition has resulted in the increase the debt liability of the corporation by the same amount,” the company said.
The Tan group is currently in the process of consolidating its assets under LT Group. The company expects to complete the consolidation before the end of the year.
Aside from Asia Brewery, LT Group is acquiring interests in Fortune Tobacco, Paramount LandEquities, Saturn Land Holdings, Philippine National Bank and Allied Banking Corp.
LT Group was also supposed to acquire the 49.84% stake in Philippine Airlines and 50.97% stake in Air Philippines. However, the company recently decided to defer the acquisition of Tan’s airline units.
To finance the acquisitions, the group plans to sell up to 3 billion shares through a follow-on offering in 2013. - Rappler.com