ANDREW Tan-led Emperador, Inc. said on Wednesday it will issue additional shares worth P832 million to a Singapore fund under an existing equity linked securities (ELS) agreement with the latter.
In a disclosure to the Philippine Stock Exchange, Emperador said it has agreed to issue 122.4 million new common shares to Arran Investment Private Ltd. for a total consideration of P832.26 million “to cover the accrued interest due under the ELS.”
The shares have a par value of P1 each.
Emperador said that for and in consideration of the subscription price of P832.26 million, “full receipt of which is hereby acknowledged by the company, the company hereby issues, transfers and conveys, absolutely, unconditionally and irrevocably, unto the investor all of the subscription shares, free and clear of any claim, lien, encumbrance, charge or restriction whatsoever.”
Arran is an affiliate of Singapore sovereign wealth fund GIC Pte Ltd. and operates as a bank/financial holding company.
In December 2014, Emperador said Arran had completed its acquisition of an 11.76 percent interest in Emperador worth P22 billion.
“We wish to advise that Arran Investment Private Limited, an affiliate of GIC Private Limited, Singapore’s sovereign wealth fund, has completed today its initial investment in Emperador Inc. of P17.6 billion comprising the purchase of common shares and equity linked securities convertible to common shares and an option to invest additional amount of P4.4 billion,” Emperador told the local bourse at the time.
Brandy maker Emperador owns Spanish brandy and sherry brands led by Fundador as well as Scotch whisky brands led by The Dalmore and Jura.
For the first nine months of the year, Emperador grew its net income by 18 percent to P1.7 billion on the back of strong revenues.