AGI sets backdoor listing of Emperador

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The Andrew Tan-led Alliance Global Group Inc. (AGI) has started setting up the backdoor listing of its distilled liquor business in the Philippine Stock Exchange (PSE), via subscription of shares in listed firm Touch Solutions Inc. (TSI).

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In a filing with the PSE, AGI disclosed that it subscribed to some P15-billion shares of TSI, among other investors, in exchange of Emperador Distillers Inc. shares.

AGI, among other investors, has agreed to subscribe to an aggregate of up to 15 billion shares of TSI at par value, to be issued out of the proposed increase in the authorized capital stock of TSI, the disclosure specified.

As part of the transaction, AGI will transfer, and TSI will receive, shares of Emperador.

After a careful review, the PSE figured out that the above-mentioned transactions and corporate actions are covered by the its Rules on Backdoor Listing.

“Given the foregoing, the exchange will implement a trading suspension on TSI shares effective at 9 a.m. today, August 29, 2013, pending compliance by the corporation with the requirements set forth in the above-mentioned provisions of the rules,” the PSE said in a memorandum on Thursday.

After securing its board approval, listed software firm TSI is now set to change its corporate name as well as hike its capital from P100 million to P20 billion.

In its filing with the local bourse a few days ago, TSI disclosed that its board has approved the firm’s plan to change its corporate name and secondary purpose, as well as the heftily increase of its capital.

Specifically, the software firm will boost its authorized capital stock from P100 million, divided into 100 million shares with par value of P1 per share each, to P20-billion divided into 20 billion shares with par value of also P1 each share.

In line with the increase in capital, TSI said that it will be conducting an equity offering.

Meanwhile, in its bid to solidify its product’s presence in the global market, Emperador has earmarked a P5.8-billion investment budget for Spain over the next 12 months.

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