JG Summit sells URC shares to fund Meralco puchase
MANILA, Philippines – JG Summit Holdings Inc. of the Gokongwei family has raised P12 billion from a share sale to partially fund its acquisition of 27% stake in power distributor Manila Electric Company (Meralco).
In a disclosure to the Philippine Stock Exchange Friday, October 4, JG Summit said it sold 105 million shares in its food and beverage manufacturing arm Universal Robina Corp. through an overnight placement.
The transaction was at P115 per, 6.5% less than URC's share closing price on Thursday.
JG Summit senior vice president for finance Bach Johann M. Sebastian confirmed in a text message to reporters that the share sale would be used in the partial funding of the Meralco shares acquisition.
Earlier this week, the Gokongwei-owned holdings firm reported its planned acquisition of San Miguel's 27% in Meralco at P72 billion. The transaction roughly translates to 235.75 per share.
The selling of shares reduced JG Summit's ownership in URC by 4.81% at 55.7%. - Rappler.com