Philippines: The food and beverage company, SAN MIGUEL Corp (SMC), announced on April 8 it raised 17.8 billion pesos from its 1-for-10 stock rights offer, which was fully subscribed. The company said the proceeds will fund its expansion projects in Asia-Pacific. SMC has offered to investors a total of 173.4 million Class A shares at 54.70 pesos each, and 111.2 million Class B shares at 74.74 pesos each, equivalent to 10 percent of its outstanding capital stock.

In a statement, San Miguel said its majority shareholders exercised their rights in the share offer, with the SMC Retirement Fund taking the balance of the unsubscribed shares. Those who subscribed were San Miguel chairman and chief executive officer Eduardo Cojuangco Jr, Kirin Brewery Ltd and SM Investments Corp.

The government, through the Coconut Industry Investment Fund (CIIF), the Social Security System and the Government Service Insurance System also participated in the offer, San Miguel said.

It did not say how much shares each shareholder acquired.

Earlier, the state's Presidential Commission on Good Government (PCGG) said it stands to lose a board seat in San Miguel after it failed to fully subscribe to the food and beverage firm's fund-raising exercise due to insufficient funds. It used the funds of CIIF to subscribe to the rights offer.

Prior to the fund-raising exercise, the PCGG had five board seats in the food and beverage firm's 15-member board. "The positive response of stockholders to the rights offering manifests their confidence in the company's bid to become among the leading companies in Asia," Cojuangco said.

BDO Capital & Investment Corp was the financial adviser for the rights offer, while Sycip Salazar Hernandez & Gaitman was the legal counsel, San Miguel said. (1 usd = 54.60 pesos)

10 April, 2005