E-Malt.com News article: The Philippines: San Miguel Corporation lists preferred shares worth P65.5 bln

San Miguel Corporation, the parent of the largest Philippine brewer, said on December, 8 it has listed 873,173,353 Series “1” Preferred Shares worth P65.5 billion, representing 27.6 percent of the company’s outstanding stock.

The peso-denominated preferred stocks were offered by the diversifying conglomerate to existing common shareholders last year at an issue price of P75 per share and an exchange ratio of one preferred share for every one common share with a dividend rate of 8% per annum.

Ramon S. Ang, President and COO of San Miguel said the listing “will provide liquidity for our share owners, allowing them to trade their shares in the market, creating more value for them and, at the same time, providing more investors the opportunity to participate in San Miguel’s growth.”

He added that the company’s diversification strategy is working well, and that the benefits of the changes have been evident in its profit margins and cash flow.

SMC’s stock price, he said, reached a record high in the past last two months, reflecting the enterprise value of its core business and the new investments it made.

“It’s taken some time, but finally the market is appreciating San Miguel’s growth story. All in all, our efforts are paying off and we are very much on track to deliver good growth,” he said.

The listing was the conglomerate’s third, following the listing of oil refining and distribution arm Petron Corp.’s preferred shares early this year, and the initial public offering of San Miguel Brewery Inc. in 2008.


10 December, 2010