JG Summit gets SEC ok for P30-B bond issue

The Gokongwei-led holding company is raising funds to finance its acquisition of shares in power distributor Meralco

DEAL. JG Summit acquires a substantial stake held by the San Miguel group in power distributor Meralco. Photo taken by AFP

MANILA, Philippines – The Securities and Exchange Commission (SEC) approved Friday, February 7 the P30-billion proposed bond issuance of Gokongwei-led conglomerate JG Summit Holdings Inc.

JG Summit is raising funds to finance its acquisition of a substantial stake in power distributor Manila Electric Company (Meralco).

Based on the filing with SEC, the holding company will offer bonds with a principal amount of P30 billion in one or more tranches. The bonds will have tenors of 5, 7 and 10 years.

The conglomerate hired BDO Capital and Investments Corporation, BPI Capital Corporation, First Metro Investments Corporation, Hong Kong Shanghai Banking Corporation and Standard Chartered Bank as joint lead managers and underwriters.

“The net proceeds from the bond issuance shall be utilized by the company to partially finance the company’s acquisition of Manila Electric Company shares and for general corporate purposes,” JG Summit said.

JG Summit, owned by tycoon John Gokongwei, signed in December a deal to buy 27.1% of Meralco from San Miguel Corporation.

JG Summit acquired 305,689,397 million common Meralco shares from San Miguel and subsidiaries San Miguel Pure Foods Company Inc. and SMC Global Power Holdings Corporation for P72 billion.

Read related stories:

JG Summit to pay P72B for San Miguel’s Meralco stake

San Miguel open to selling Meralco shares

Meralco turns over new leaf as Lopez steps down as chair

San Miguel sells Meralco shares to GSIS, MVP


In December, JG Summit also raised P8.8 billion from sale of 220 million shares priced at P40 per share also to fund its Meralco investment. Aside from raising capital, the transaction also widened the company’s public float to as much as 34%. – Rappler.com

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