Andrew Tan sells P7B Alliance Global shares

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Business tycoon Andrew Tan has unloaded P7 billion worth of shares in Alliance Global Group Inc. (AGI) in a transaction known as an accelerated overnight equity placement.

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The identity of the buyer was not disclosed.

“Alliance Global Group Inc. has been advised that on July 11, 2014, Andrew Tan, the chairman and chief executive officer of the company, sold 278 million shares via an accelerated overnight equity placement at a price of P28.30 per share,” the listed group told the Philippine Stock Exchange on Friday.

AGI said the transaction was conducted “in response to a reverse enquiry from one of the largest asset managers globally.” UBS AG acted as sole placement agent for the transaction.

Lexter Azurin, research analyst at Unicapital Securities Inc., said the transaction may be a funding strategy for the group to provide its liquor arm, Emperador Inc., needed capital for a recent major acquisition.

In May, Emperador struck a P31.72-billion deal to buy out Scotch distiller Whyte & Mackay, the fifth largest maker of Scotch whisky in the world.

“There may be some follow-up there [in the transaction made by Tan]. It may have some relation to the funding activity being done for the acquisition of Whyte & Mackay,” Azurin told The Manila Times.

“There are no specifics so we can’t confirm yet who the buyer is,” he further said.

Through its wholly owned subsidiary Emperador UK Ltd., the Andrew Tan-led liquor firm has entered into an agreement with United Spirits (Great Britain) Ltd., a wholly owned subsidiary of United Spirits Ltd.

(USL), in May to acquire 100 percent of Whyte & Mackay Group Ltd. and its subsidiaries.

In a previous disclosure to the local bourse, the company said that the all-cash offer has been agreed at an enterprise value of 430 million pounds or nearly P32 billion.

Whyte & Mackay is the fifth largest maker of Scotch whisky in the world with a history of more than 160 years, and has production capacity of 50 million liters of alcohol per annum. With five distilleries and one bottling plant in Scotland, Whyte & Mackay produces a wide range of products sold in more than 50 countries, mainly in Europe and North America.

The group said the acquisition of Whyte & Mackay is in line with Emperador’s long-term strategy to expand its global footprint.

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