E-Malt.com News article: The Philippines: San Miguel Brewery completes bond offering, to remain listed with the Philippine Stock Exchange

San Miguel Brewery Inc., the beer unit of conglomerate San Miguel Corp., plans to remain listed with the Philippine Stock Exchange and comply with the 10-percent minimum public float of the exchange, the Manila Standard Today newspaper reported on April, 3.

SMB chief finance officer Mercy Marie Amador said on April, 3 in an interview at the sidelines of the listing of P17 billion worth of SMB bonds the company was looking at various options that would eventually dilute the company’s two major shareholders—parent San Miguel Corp. and Kirin Holdings of Japan.

“We plan to comply with the 10-percent minimum public ownership requirement of the PSE,” Amador said.

Amador said the company received offers from underwriters and financial advisers on how to comply with the public float requirement.

SMB’s public float is currently at 0.6 percent of total capital. SMC owns 51 percent of the beer unit while Kirin holds 49.4 percent.

Amador said the company was reviewing market conditions, citing that over 30 listed stocks needed to widen their public float.

“We see a lot of companies going to the market in the coming months to comply with the requirement,” Amador said.

The scenario could affect the company’s plan because the market might not also get the right price for the shares.

SMB, a major source of revenues for SMC, has been a long-time leader in the Philippine beer industry, accounting for 96 percent of the local beer market.

The beer unit currently has six main production facilities in the Philippines, which produce well-known brands, including San Miguel Pale Pilsen, Red Horse Beer and San Mig Light.

SMB in 2011 posted a net income of P12.2 billion, up 17.4 percent from a year ago, as consolidated net sales increased 6.3 percent to P71.9 billion, largely due to the higher sales volume of domestic and international operations.

SMB completed on Monday, April, 3 its P20 fixed-rate offering.

SMB told the Philippine Stock Exchange that of the P20-billion bond, P3 billion (Series D) will have a term of five years and one day beginning April 2, 2012, with a fixed interest rate of 6.05 percent per year. Series E bond, with an aggregate amount of P10 billion will have a term of seven years and a fixed interest rate of P5.93 percent per annum, while Series F bond, which amounts to P7 billion, have a 10-year term and a fixed interest rate of 6.6 percent per annum.


04 April, 2012