MANILA, Philippines – JG Summit Holdings Inc. sold shares worth P8.8 billion to partially fund its acquisition of a stake in power distributor Manila Electric Company (Meralco).
The conglomerate, led by billionaire John Gokongwei, sold 220 million shares for P40 apiece via overnight placement, it told the Philippine Stock Exchange in a disclosure on Tuesday, November 26.
"The proceeds from the offering will be used to partially fund the Meralco acquisition and for general corporate purposes," noted JG Summit.
The acquisition will mark JG Summit's entry into the power distribution sector as well as San Miguel's exit.
This will also serve as another partnership between JG Summit and the Manuel Pangilinan group, which partly owns Meralco.
JG Summit is engaged in food manufacturing, airlines, property, banking and petrochemicals.
In 2011, it sold its telecommunications arm Digital Telecommunications Philippines Inc. to Pangilinan-led Philippine Long Distance Telephone Company group via a share-swap agreement valued at $2 billion.